Correlation Between Penneo AS and Monsenso
Can any of the company-specific risk be diversified away by investing in both Penneo AS and Monsenso 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 Penneo AS and Monsenso into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Penneo AS and Monsenso AS, you can compare the effects of market volatilities on Penneo AS and Monsenso 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 Penneo AS with a short position of Monsenso. Check out your portfolio center. Please also check ongoing floating volatility patterns of Penneo AS and Monsenso.
Diversification Opportunities for Penneo AS and Monsenso
Weak diversification
The 3 months correlation between Penneo and Monsenso is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Penneo AS and Monsenso AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Monsenso AS and Penneo AS 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 Penneo AS are associated (or correlated) with Monsenso. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Monsenso AS has no effect on the direction of Penneo AS i.e., Penneo AS and Monsenso go up and down completely randomly.
Pair Corralation between Penneo AS and Monsenso
Assuming the 90 days trading horizon Penneo AS is expected to generate 0.26 times more return on investment than Monsenso. However, Penneo AS is 3.79 times less risky than Monsenso. It trades about -0.04 of its potential returns per unit of risk. Monsenso AS is currently generating about -0.04 per unit of risk. If you would invest 818.00 in Penneo AS on August 29, 2024 and sell it today you would lose (18.00) from holding Penneo AS or give up 2.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Penneo AS vs. Monsenso AS
Performance |
| Timeline |
| Penneo AS |
| Monsenso AS |
Penneo AS and Monsenso Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Penneo AS and Monsenso
The main advantage of trading using opposite Penneo AS and Monsenso positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Penneo AS position performs unexpectedly, Monsenso 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 Monsenso will offset losses from the drop in Monsenso's long position.The idea behind Penneo AS and Monsenso AS pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Monsenso vs. FOM Technologies AS | Monsenso vs. Penneo AS | Monsenso vs. BioPorto | Monsenso vs. Shape Robotics 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |