Correlation Between Monsenso and Agat Ejendomme
Can any of the company-specific risk be diversified away by investing in both Monsenso and Agat Ejendomme 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 Monsenso and Agat Ejendomme into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Monsenso AS and Agat Ejendomme AS, you can compare the effects of market volatilities on Monsenso and Agat Ejendomme 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 Monsenso with a short position of Agat Ejendomme. Check out your portfolio center. Please also check ongoing floating volatility patterns of Monsenso and Agat Ejendomme.
Diversification Opportunities for Monsenso and Agat Ejendomme
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Monsenso and Agat is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Monsenso AS and Agat Ejendomme AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agat Ejendomme AS and Monsenso 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 Monsenso AS are associated (or correlated) with Agat Ejendomme. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Agat Ejendomme AS has no effect on the direction of Monsenso i.e., Monsenso and Agat Ejendomme go up and down completely randomly.
Pair Corralation between Monsenso and Agat Ejendomme
Assuming the 90 days trading horizon Monsenso AS is expected to generate 1.99 times more return on investment than Agat Ejendomme. However, Monsenso is 1.99 times more volatile than Agat Ejendomme AS. It trades about 0.0 of its potential returns per unit of risk. Agat Ejendomme AS is currently generating about -0.08 per unit of risk. If you would invest 37.00 in Monsenso AS on October 26, 2024 and sell it today you would lose (1.00) from holding Monsenso AS or give up 2.7% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Monsenso AS vs. Agat Ejendomme AS
Performance |
| Timeline |
| Monsenso AS |
| Agat Ejendomme AS |
Monsenso and Agat Ejendomme Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Monsenso and Agat Ejendomme
The main advantage of trading using opposite Monsenso and Agat Ejendomme positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Monsenso position performs unexpectedly, Agat Ejendomme 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 Agat Ejendomme will offset losses from the drop in Agat Ejendomme's long position.| Monsenso vs. FOM Technologies AS | Monsenso vs. Penneo AS | Monsenso vs. BioPorto | Monsenso vs. Shape Robotics AS |
| Agat Ejendomme vs. Cemat AS | Agat Ejendomme vs. Columbus AS | Agat Ejendomme vs. Harboes Bryggeri AS | Agat Ejendomme vs. Copenhagen Capital AS |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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