Correlation Between Sabien Technology and Moneta Money

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

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

Diversification Opportunities for Sabien Technology and Moneta Money

0.31

Correlation Coefficient

Sabien Technology  Moneta Money

Weak diversification

The 3 months correlation between Sabien and Moneta is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Sabien Technology Group and Moneta Money Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Moneta Money Bank and Sabien Technology 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 Sabien Technology Group are associated (or correlated) with Moneta Money. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Moneta Money Bank has no effect on the direction of Sabien Technology i.e., Sabien Technology and Moneta Money go up and down completely randomly.

Pair Corralation between Sabien Technology and Moneta Money

Assuming the 90 days trading horizon Sabien Technology Group is expected to under-perform the Moneta Money. In addition to that, Sabien Technology is 963.51 times more volatile than Moneta Money Bank. It trades about -0.02 of its total potential returns per unit of risk. Moneta Money Bank is currently generating about 0.13 per unit of volatility. If you would invest  8,242  in Moneta Money Bank on October 24, 2024 and sell it today you would earn a total of  3.00  from holding Moneta Money Bank or generate 0.04% return on investment over 90 days.

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

Sabien Technology Group  vs.  Moneta Money Bank

Sabien Technology

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Sabien Technology Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, Sabien Technology is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

Moneta Money Bank

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Moneta Money Bank are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Moneta Money is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Sabien Technology and Moneta Money

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

The idea behind Sabien Technology Group and Moneta Money Bank 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 Global Correlations module to find global opportunities by holding instruments from different markets.