Correlation Between Movinn AS and Moens Bank

Can any of the company-specific risk be diversified away by investing in both Movinn AS 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 Movinn AS and Moens Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.

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

Diversification Opportunities for Movinn AS and Moens Bank

0.0

Correlation Coefficient

Movinn AS  Moens Bank

Pay attention - limited upside

The 3 months correlation between Movinn and Moens is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Movinn 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 Movinn AS 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 Movinn 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 Movinn AS i.e., Movinn AS and Moens Bank go up and down completely randomly.

Pair Corralation between Movinn AS and Moens Bank

Assuming the 90 days trading horizon Movinn AS is expected to under-perform the Moens Bank. But the stock apears to be less risky and, when comparing its historical volatility, Movinn AS is 1.05 times less risky than Moens Bank. The stock trades about -0.17 of its potential returns per unit of risk. The Moens Bank AS is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest  22,000  in Moens Bank AS on October 11, 2024 and sell it today you would earn a total of  1,800  from holding Moens Bank AS or generate 8.18% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Movinn AS  vs.  Moens Bank AS

Movinn AS

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Movinn AS has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unfluctuating performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Moens Bank AS

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Moens Bank AS are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, Moens Bank is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Movinn AS and Moens Bank

The main advantage of trading using opposite Movinn AS and Moens Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Movinn AS 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.

The idea behind Movinn AS and Moens Bank 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.