Correlation Between Monster Beverage and Nucletron Electronic

Can any of the company-specific risk be diversified away by investing in both Monster Beverage and Nucletron Electronic 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 Monster Beverage and Nucletron Electronic into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Monster Beverage Corp and Nucletron Electronic Aktiengesellschaft, you can compare the effects of market volatilities on Monster Beverage and Nucletron Electronic 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 Monster Beverage with a short position of Nucletron Electronic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Monster Beverage and Nucletron Electronic.

Diversification Opportunities for Monster Beverage and Nucletron Electronic

-0.51

Correlation Coefficient

Monster Beverage  Nucletron Electronic

Excellent diversification

The 3 months correlation between Monster and Nucletron is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Monster Beverage Corp and Nucletron Electronic Aktienges in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nucletron Electronic and Monster Beverage 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 Monster Beverage Corp are associated (or correlated) with Nucletron Electronic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nucletron Electronic has no effect on the direction of Monster Beverage i.e., Monster Beverage and Nucletron Electronic go up and down completely randomly.

Pair Corralation between Monster Beverage and Nucletron Electronic

Assuming the 90 days trading horizon Monster Beverage is expected to generate 5.66 times less return on investment than Nucletron Electronic. In addition to that, Monster Beverage is 5.06 times more volatile than Nucletron Electronic Aktiengesellschaft. It trades about 0.0 of its total potential returns per unit of risk. Nucletron Electronic Aktiengesellschaft is currently generating about 0.06 per unit of volatility. If you would invest  690.00  in Nucletron Electronic Aktiengesellschaft on April 24, 2025 and sell it today you would earn a total of  70.00  from holding Nucletron Electronic Aktiengesellschaft or generate 10.14% return on investment over 90 days.

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

Monster Beverage Corp  vs.  Nucletron Electronic Aktienges

Monster Beverage Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Monster Beverage Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Monster Beverage is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Nucletron Electronic

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Nucletron Electronic Aktiengesellschaft are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, Nucletron Electronic is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Monster Beverage and Nucletron Electronic

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

The idea behind Monster Beverage Corp and Nucletron Electronic Aktiengesellschaft 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.