Correlation Between Moneta Money and Komercni Banka

Can any of the company-specific risk be diversified away by investing in both Moneta Money and Komercni Banka 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 Moneta Money and Komercni Banka into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Moneta Money Bank and Komercni Banka AS, you can compare the effects of market volatilities on Moneta Money and Komercni Banka 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 Moneta Money with a short position of Komercni Banka. Check out your portfolio center. Please also check ongoing floating volatility patterns of Moneta Money and Komercni Banka.

Diversification Opportunities for Moneta Money and Komercni Banka

0.83

Correlation Coefficient

Moneta Money  Komercni Banka

Very poor diversification

The 3 months correlation between Moneta and Komercni is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Moneta Money Bank and Komercni Banka AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Komercni Banka AS and Moneta Money 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 Moneta Money Bank are associated (or correlated) with Komercni Banka. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Komercni Banka AS has no effect on the direction of Moneta Money i.e., Moneta Money and Komercni Banka go up and down completely randomly.

Pair Corralation between Moneta Money and Komercni Banka

Assuming the 90 days trading horizon Moneta Money Bank is expected to generate 1.21 times more return on investment than Komercni Banka. However, Moneta Money is 1.21 times more volatile than Komercni Banka AS. It trades about 0.13 of its potential returns per unit of risk. Komercni Banka AS is currently generating about 0.1 per unit of risk. If you would invest  6,843  in Moneta Money Bank on November 19, 2024 and sell it today you would earn a total of  7,297  from holding Moneta Money Bank or generate 106.63% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	100.0%
Values	Daily Returns

Moneta Money Bank  vs.  Komercni Banka AS

Moneta Money Bank

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Moneta Money Bank are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Moneta Money reported solid returns over the last few months and may actually be approaching a breakup point.

Komercni Banka AS

Risk-Adjusted Performance

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Komercni Banka AS are ranked lower than 26 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Komercni Banka reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Moneta Money and Komercni Banka

The main advantage of trading using opposite Moneta Money and Komercni Banka positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Moneta Money position performs unexpectedly, Komercni Banka 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 Komercni Banka will offset losses from the drop in Komercni Banka's long position.

The idea behind Moneta Money Bank and Komercni Banka AS pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Bonds Directory module to find actively traded corporate debentures issued by US companies.