Correlation Between Monsenso and Lollands Bank
Can any of the company-specific risk be diversified away by investing in both Monsenso and Lollands 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 Lollands 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 Lollands Bank, you can compare the effects of market volatilities on Monsenso and Lollands 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 Lollands Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Monsenso and Lollands Bank.
Diversification Opportunities for Monsenso and Lollands Bank
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Monsenso and Lollands is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Monsenso AS and Lollands Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lollands 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 Lollands Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lollands Bank has no effect on the direction of Monsenso i.e., Monsenso and Lollands Bank go up and down completely randomly.
Pair Corralation between Monsenso and Lollands Bank
Assuming the 90 days trading horizon Monsenso AS is expected to generate 5.87 times more return on investment than Lollands Bank. However, Monsenso is 5.87 times more volatile than Lollands Bank. It trades about 0.03 of its potential returns per unit of risk. Lollands Bank is currently generating about 0.02 per unit of risk. If you would invest 43.00 in Monsenso AS on November 5, 2024 and sell it today you would lose (14.00) from holding Monsenso AS or give up 32.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Monsenso AS vs. Lollands Bank
Performance |
| Timeline |
| Monsenso AS |
| Lollands Bank |
Monsenso and Lollands Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Monsenso and Lollands Bank
The main advantage of trading using opposite Monsenso and Lollands Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Monsenso position performs unexpectedly, Lollands 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 Lollands Bank will offset losses from the drop in Lollands Bank's long position.| Monsenso vs. FOM Technologies AS | Monsenso vs. Penneo AS | Monsenso vs. BioPorto | Monsenso vs. Shape Robotics AS |
| Lollands Bank vs. Skjern Bank AS | Lollands Bank vs. Kreditbanken AS | Lollands Bank vs. Djurslands Bank | Lollands Bank vs. Groenlandsbanken 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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