Correlation Between Monsenso and Spar Nord
Can any of the company-specific risk be diversified away by investing in both Monsenso and Spar Nord 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 Spar Nord into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Monsenso AS and Spar Nord Bank, you can compare the effects of market volatilities on Monsenso and Spar Nord 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 Spar Nord. Check out your portfolio center. Please also check ongoing floating volatility patterns of Monsenso and Spar Nord.
Diversification Opportunities for Monsenso and Spar Nord
Very good diversification
The 3 months correlation between Monsenso and Spar is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Monsenso AS and Spar Nord Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Spar Nord 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 Spar Nord. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Spar Nord Bank has no effect on the direction of Monsenso i.e., Monsenso and Spar Nord go up and down completely randomly.
Pair Corralation between Monsenso and Spar Nord
Assuming the 90 days trading horizon Monsenso AS is expected to under-perform the Spar Nord. In addition to that, Monsenso is 26.62 times more volatile than Spar Nord Bank. It trades about -0.27 of its total potential returns per unit of risk. Spar Nord Bank is currently generating about 0.25 per unit of volatility. If you would invest 20,650 in Spar Nord Bank on November 9, 2024 and sell it today you would earn a total of 250.00 from holding Spar Nord Bank or generate 1.21% 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. Spar Nord Bank
Performance |
| Timeline |
| Monsenso AS |
| Spar Nord Bank |
Monsenso and Spar Nord Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Monsenso and Spar Nord
The main advantage of trading using opposite Monsenso and Spar Nord positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Monsenso position performs unexpectedly, Spar Nord 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 Spar Nord will offset losses from the drop in Spar Nord's long position.| Monsenso vs. FOM Technologies AS | Monsenso vs. Penneo AS | Monsenso vs. BioPorto | Monsenso vs. Shape Robotics AS |
| Spar Nord vs. Sydbank AS | Spar Nord vs. Jyske Bank AS | Spar Nord vs. Alm Brand | Spar Nord vs. Nordea Bank Abp |
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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