Correlation Between Monsenso and Tryg AS
Can any of the company-specific risk be diversified away by investing in both Monsenso and Tryg AS 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 Tryg AS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Monsenso AS and Tryg AS, you can compare the effects of market volatilities on Monsenso and Tryg AS 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 Tryg AS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Monsenso and Tryg AS.
Diversification Opportunities for Monsenso and Tryg AS
Very good diversification
The 3 months correlation between Monsenso and Tryg is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Monsenso AS and Tryg AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tryg AS 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 Tryg AS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tryg AS has no effect on the direction of Monsenso i.e., Monsenso and Tryg AS go up and down completely randomly.
Pair Corralation between Monsenso and Tryg AS
Assuming the 90 days trading horizon Monsenso AS is expected to under-perform the Tryg AS. In addition to that, Monsenso is 8.5 times more volatile than Tryg AS. It trades about -0.08 of its total potential returns per unit of risk. Tryg AS is currently generating about 0.01 per unit of volatility. If you would invest 16,170 in Tryg AS on August 25, 2024 and sell it today you would earn a total of 10.00 from holding Tryg AS or generate 0.06% 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. Tryg AS
Performance |
| Timeline |
| Monsenso AS |
| Tryg AS |
Monsenso and Tryg AS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Monsenso and Tryg AS
The main advantage of trading using opposite Monsenso and Tryg AS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Monsenso position performs unexpectedly, Tryg AS 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 Tryg AS will offset losses from the drop in Tryg AS's long position.| Monsenso vs. FOM Technologies AS | Monsenso vs. Penneo AS | Monsenso vs. BioPorto | Monsenso vs. Shape Robotics AS |
| Tryg AS vs. Dataproces Group AS | Tryg AS vs. cBrain AS | Tryg AS vs. ALK Abell AS | Tryg AS vs. ChemoMetec 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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