Correlation Between Monsenso and Dampskibsselskabet
Can any of the company-specific risk be diversified away by investing in both Monsenso and Dampskibsselskabet 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 Dampskibsselskabet into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Monsenso AS and Dampskibsselskabet Norden AS, you can compare the effects of market volatilities on Monsenso and Dampskibsselskabet 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 Dampskibsselskabet. Check out your portfolio center. Please also check ongoing floating volatility patterns of Monsenso and Dampskibsselskabet.
Diversification Opportunities for Monsenso and Dampskibsselskabet
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Monsenso and Dampskibsselskabet is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Monsenso AS and Dampskibsselskabet Norden AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dampskibsselskabet 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 Dampskibsselskabet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dampskibsselskabet has no effect on the direction of Monsenso i.e., Monsenso and Dampskibsselskabet go up and down completely randomly.
Pair Corralation between Monsenso and Dampskibsselskabet
Assuming the 90 days trading horizon Monsenso AS is expected to generate 3.32 times more return on investment than Dampskibsselskabet. However, Monsenso is 3.32 times more volatile than Dampskibsselskabet Norden AS. It trades about 0.05 of its potential returns per unit of risk. Dampskibsselskabet Norden AS is currently generating about -0.07 per unit of risk. If you would invest 39.00 in Monsenso AS on August 25, 2024 and sell it today you would earn a total of 9.00 from holding Monsenso AS or generate 23.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Monsenso AS vs. Dampskibsselskabet Norden AS
Performance |
| Timeline |
| Monsenso AS |
| Dampskibsselskabet |
Monsenso and Dampskibsselskabet Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Monsenso and Dampskibsselskabet
The main advantage of trading using opposite Monsenso and Dampskibsselskabet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Monsenso position performs unexpectedly, Dampskibsselskabet 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 Dampskibsselskabet will offset losses from the drop in Dampskibsselskabet's long position.| Monsenso vs. FOM Technologies AS | Monsenso vs. Penneo AS | Monsenso vs. BioPorto | Monsenso vs. Shape Robotics AS |
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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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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