Correlation Between CTP NV and Moneta Money

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

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

Diversification Opportunities for CTP NV and Moneta Money

-0.82

Correlation Coefficient

CTP NV  Moneta Money

Pay attention - limited upside

The 3 months correlation between CTP and Moneta is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding CTP NV 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 CTP NV 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 CTP NV 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 CTP NV i.e., CTP NV and Moneta Money go up and down completely randomly.

Pair Corralation between CTP NV and Moneta Money

Assuming the 90 days trading horizon CTP NV is expected to generate 1.5 times less return on investment than Moneta Money. In addition to that, CTP NV is 1.47 times more volatile than Moneta Money Bank. It trades about 0.06 of its total potential returns per unit of risk. Moneta Money Bank is currently generating about 0.12 per unit of volatility. If you would invest  6,133  in Moneta Money Bank on September 20, 2024 and sell it today you would earn a total of  6,387  from holding Moneta Money Bank or generate 104.14% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	98.99%
Values	Daily Returns

CTP NV  vs.  Moneta Money Bank

CTP NV

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days CTP NV has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, CTP NV is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Moneta Money Bank

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Moneta Money Bank are ranked lower than 14 (%) 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 CTP NV and Moneta Money

The main advantage of trading using opposite CTP NV and Moneta Money positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CTP NV 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 CTP NV 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.