Correlation Between Coloseum Holding and Moneta Money

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

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

Diversification Opportunities for Coloseum Holding and Moneta Money

-0.89

Correlation Coefficient

Coloseum Holding  Moneta Money

Pay attention - limited upside

The 3 months correlation between Coloseum and Moneta is -0.89. Overlapping area represents the amount of risk that can be diversified away by holding Coloseum Holding as 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 Coloseum Holding 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 Coloseum Holding as 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 Coloseum Holding i.e., Coloseum Holding and Moneta Money go up and down completely randomly.

Pair Corralation between Coloseum Holding and Moneta Money

Assuming the 90 days trading horizon Coloseum Holding as is expected to under-perform the Moneta Money. In addition to that, Coloseum Holding is 2.65 times more volatile than Moneta Money Bank. It trades about -0.17 of its total potential returns per unit of risk. Moneta Money Bank is currently generating about 0.17 per unit of volatility. If you would invest  10,799  in Moneta Money Bank on August 31, 2024 and sell it today you would earn a total of  1,541  from holding Moneta Money Bank or generate 14.27% return on investment over 90 days.

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

Coloseum Holding as  vs.  Moneta Money Bank

Coloseum Holding

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Coloseum Holding as has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in December 2024. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Moneta Money Bank

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Moneta Money Bank are ranked lower than 13 (%) 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.

Pair Trading with Coloseum Holding and Moneta Money

The main advantage of trading using opposite Coloseum Holding and Moneta Money positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coloseum Holding 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 Coloseum Holding as 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.

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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.