Correlation Between Cessatech and Moens Bank
Can any of the company-specific risk be diversified away by investing in both Cessatech and Moens Bank at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Cessatech and Moens Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cessatech AS and Moens Bank AS, you can compare the effects of market volatilities on Cessatech and Moens Bank and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Cessatech with a short position of Moens Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cessatech and Moens Bank.
Diversification Opportunities for Cessatech and Moens Bank
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Cessatech and Moens is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Cessatech AS and Moens Bank AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Moens Bank AS and Cessatech is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Cessatech AS are associated (or correlated) with Moens Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Moens Bank AS has no effect on the direction of Cessatech i.e., Cessatech and Moens Bank go up and down completely randomly.
Pair Corralation between Cessatech and Moens Bank
Assuming the 90 days trading horizon Cessatech AS is expected to under-perform the Moens Bank. In addition to that, Cessatech is 1.73 times more volatile than Moens Bank AS. It trades about -0.04 of its total potential returns per unit of risk. Moens Bank AS is currently generating about 0.05 per unit of volatility. If you would invest 21,800 in Moens Bank AS on September 25, 2024 and sell it today you would earn a total of 400.00 from holding Moens Bank AS or generate 1.83% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Cessatech AS vs. Moens Bank AS
Performance |
Timeline |
Cessatech AS |
Moens Bank AS |
Cessatech and Moens Bank Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Cessatech and Moens Bank
The main advantage of trading using opposite Cessatech and Moens Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cessatech position performs unexpectedly, Moens Bank can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Moens Bank will offset losses from the drop in Moens Bank's long position.Cessatech vs. Novo Nordisk AS | Cessatech vs. Nordea Bank Abp | Cessatech vs. DSV Panalpina AS | Cessatech vs. AP Mller |
Moens Bank vs. Novo Nordisk AS | Moens Bank vs. Scandinavian Tobacco Group | Moens Bank vs. ISS AS | Moens Bank vs. FLSmidth Co |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
Global Correlations Find global opportunities by holding instruments from different markets |