Correlation Between Monsenso and FOM Technologies
Can any of the company-specific risk be diversified away by investing in both Monsenso and FOM Technologies 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 FOM Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Monsenso AS and FOM Technologies AS, you can compare the effects of market volatilities on Monsenso and FOM Technologies 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 FOM Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Monsenso and FOM Technologies.
Diversification Opportunities for Monsenso and FOM Technologies
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Monsenso and FOM is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Monsenso AS and FOM Technologies AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FOM Technologies 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 FOM Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FOM Technologies has no effect on the direction of Monsenso i.e., Monsenso and FOM Technologies go up and down completely randomly.
Pair Corralation between Monsenso and FOM Technologies
Assuming the 90 days trading horizon Monsenso AS is expected to generate 2.81 times more return on investment than FOM Technologies. However, Monsenso is 2.81 times more volatile than FOM Technologies AS. It trades about 0.04 of its potential returns per unit of risk. FOM Technologies AS is currently generating about -0.08 per unit of risk. If you would invest 49.00 in Monsenso AS on August 29, 2024 and sell it today you would lose (3.00) from holding Monsenso AS or give up 6.12% 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. FOM Technologies AS
Performance |
| Timeline |
| Monsenso AS |
| FOM Technologies |
Monsenso and FOM Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Monsenso and FOM Technologies
The main advantage of trading using opposite Monsenso and FOM Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Monsenso position performs unexpectedly, FOM Technologies 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 FOM Technologies will offset losses from the drop in FOM Technologies' long position.| Monsenso vs. FOM Technologies AS | Monsenso vs. Penneo AS | Monsenso vs. BioPorto | Monsenso vs. Shape Robotics AS |
| FOM Technologies vs. cBrain AS | FOM Technologies vs. Penneo AS | FOM Technologies vs. Shape Robotics AS | FOM Technologies vs. ALK Abell 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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