Correlation Between Visa and Monsenso
Can any of the company-specific risk be diversified away by investing in both Visa 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 Visa and Monsenso into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Visa Class A and Monsenso AS, you can compare the effects of market volatilities on Visa 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 Visa with a short position of Monsenso. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and Monsenso.
Diversification Opportunities for Visa and Monsenso
Excellent diversification
The 3 months correlation between Visa and Monsenso is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and Monsenso AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Monsenso AS and Visa 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 Visa Class A 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 Visa i.e., Visa and Monsenso go up and down completely randomly.
Pair Corralation between Visa and Monsenso
Taking into account the 90-day investment horizon Visa is expected to generate 9.75 times less return on investment than Monsenso. But when comparing it to its historical volatility, Visa Class A is 7.3 times less risky than Monsenso. It trades about 0.05 of its potential returns per unit of risk. Monsenso AS is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 31.00 in Monsenso AS on August 25, 2024 and sell it today you would earn a total of 17.00 from holding Monsenso AS or generate 54.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.95% |
| Values | Daily Returns |
Visa Class A vs. Monsenso AS
Performance |
| Timeline |
| Visa Class A |
| Monsenso AS |
Visa and Monsenso Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Visa and Monsenso
The main advantage of trading using opposite Visa and Monsenso positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa 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.| Visa vs. American Express | Visa vs. Morningstar Unconstrained Allocation | Visa vs. Sitka Gold Corp | Visa vs. MSCI ACWI exAUCONSUMER |
| 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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |