Correlation Between Monsenso and Nykredit Invest
Can any of the company-specific risk be diversified away by investing in both Monsenso and Nykredit Invest 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 Nykredit Invest into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Monsenso AS and Nykredit Invest Korte, you can compare the effects of market volatilities on Monsenso and Nykredit Invest 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 Nykredit Invest. Check out your portfolio center. Please also check ongoing floating volatility patterns of Monsenso and Nykredit Invest.
Diversification Opportunities for Monsenso and Nykredit Invest
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Monsenso and Nykredit is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Monsenso AS and Nykredit Invest Korte in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nykredit Invest Korte 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 Nykredit Invest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nykredit Invest Korte has no effect on the direction of Monsenso i.e., Monsenso and Nykredit Invest go up and down completely randomly.
Pair Corralation between Monsenso and Nykredit Invest
Assuming the 90 days trading horizon Monsenso AS is expected to generate 97.25 times more return on investment than Nykredit Invest. However, Monsenso is 97.25 times more volatile than Nykredit Invest Korte. It trades about 0.01 of its potential returns per unit of risk. Nykredit Invest Korte is currently generating about 0.31 per unit of risk. If you would invest 46.00 in Monsenso AS on September 14, 2024 and sell it today you would lose (10.00) from holding Monsenso AS or give up 21.74% 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. Nykredit Invest Korte
Performance |
| Timeline |
| Monsenso AS |
| Nykredit Invest Korte |
Monsenso and Nykredit Invest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Monsenso and Nykredit Invest
The main advantage of trading using opposite Monsenso and Nykredit Invest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Monsenso position performs unexpectedly, Nykredit Invest 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 Nykredit Invest will offset losses from the drop in Nykredit Invest's long position.| Monsenso vs. FOM Technologies AS | Monsenso vs. Penneo AS | Monsenso vs. BioPorto | Monsenso vs. Shape Robotics AS |
| Nykredit Invest vs. Nordfyns Bank AS | Nykredit Invest vs. Moens Bank AS | Nykredit Invest vs. Scandinavian Medical Solutions | Nykredit Invest vs. Skjern 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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