Correlation Between Moens Bank and Wells Fargo
Can any of the company-specific risk be diversified away by investing in both Moens Bank and Wells Fargo 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 Moens Bank and Wells Fargo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Moens Bank AS and Wells Fargo, you can compare the effects of market volatilities on Moens Bank and Wells Fargo 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 Moens Bank with a short position of Wells Fargo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Moens Bank and Wells Fargo.
Diversification Opportunities for Moens Bank and Wells Fargo
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Moens and Wells is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Moens Bank AS and Wells Fargo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wells Fargo and Moens Bank 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 Moens Bank AS are associated (or correlated) with Wells Fargo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wells Fargo has no effect on the direction of Moens Bank i.e., Moens Bank and Wells Fargo go up and down completely randomly.
Pair Corralation between Moens Bank and Wells Fargo
Assuming the 90 days trading horizon Moens Bank AS is expected to generate 1.17 times more return on investment than Wells Fargo. However, Moens Bank is 1.17 times more volatile than Wells Fargo. It trades about 0.15 of its potential returns per unit of risk. Wells Fargo is currently generating about 0.12 per unit of risk. If you would invest 22,800 in Moens Bank AS on January 20, 2024 and sell it today you would earn a total of 800.00 from holding Moens Bank AS or generate 3.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.24% |
| Values | Daily Returns |
Moens Bank AS vs. Wells Fargo
Performance |
| Timeline |
| Moens Bank AS |
| Wells Fargo |
Moens Bank and Wells Fargo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Moens Bank and Wells Fargo
The main advantage of trading using opposite Moens Bank and Wells Fargo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Moens Bank position performs unexpectedly, Wells Fargo 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 Wells Fargo will offset losses from the drop in Wells Fargo's long position.| Moens Bank vs. Skjern Bank AS | Moens Bank vs. Lollands Bank | Moens Bank vs. Nordfyns Bank AS | Moens Bank vs. Groenlandsbanken AS |
| Wells Fargo vs. Bank of America | Wells Fargo vs. JPMorgan Chase Co | Wells Fargo vs. Toronto Dominion Bank | Wells Fargo vs. Nu Holdings |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |