Correlation Between Monsenso and Djurslands Bank
Can any of the company-specific risk be diversified away by investing in both Monsenso and Djurslands Bank 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 Djurslands Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Monsenso AS and Djurslands Bank, you can compare the effects of market volatilities on Monsenso and Djurslands Bank 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 Djurslands Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Monsenso and Djurslands Bank.
Diversification Opportunities for Monsenso and Djurslands Bank
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Monsenso and Djurslands is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Monsenso AS and Djurslands Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Djurslands Bank 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 Djurslands Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Djurslands Bank has no effect on the direction of Monsenso i.e., Monsenso and Djurslands Bank go up and down completely randomly.
Pair Corralation between Monsenso and Djurslands Bank
Assuming the 90 days trading horizon Monsenso AS is expected to generate 6.54 times more return on investment than Djurslands Bank. However, Monsenso is 6.54 times more volatile than Djurslands Bank. It trades about 0.1 of its potential returns per unit of risk. Djurslands Bank is currently generating about 0.0 per unit of risk. If you would invest 40.00 in Monsenso AS on September 1, 2024 and sell it today you would earn a total of 4.00 from holding Monsenso AS or generate 10.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Monsenso AS vs. Djurslands Bank
Performance |
| Timeline |
| Monsenso AS |
| Djurslands Bank |
Monsenso and Djurslands Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Monsenso and Djurslands Bank
The main advantage of trading using opposite Monsenso and Djurslands Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Monsenso position performs unexpectedly, Djurslands Bank 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 Djurslands Bank will offset losses from the drop in Djurslands Bank's long position.| Monsenso vs. FOM Technologies AS | Monsenso vs. Penneo AS | Monsenso vs. BioPorto | Monsenso vs. Shape Robotics AS |
| Djurslands Bank vs. Skjern Bank AS | Djurslands Bank vs. Lollands Bank | Djurslands Bank vs. Kreditbanken AS | Djurslands Bank vs. Fynske Bank 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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