Correlation Between Systemair and AP Moeller
Can any of the company-specific risk be diversified away by investing in both Systemair and AP Moeller 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 Systemair and AP Moeller into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Systemair AB and AP Moeller Maersk AS, you can compare the effects of market volatilities on Systemair and AP Moeller 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 Systemair with a short position of AP Moeller. Check out your portfolio center. Please also check ongoing floating volatility patterns of Systemair and AP Moeller.
Diversification Opportunities for Systemair and AP Moeller
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Systemair and 0O76 is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Systemair AB and AP Moeller Maersk AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AP Moeller Maersk and Systemair 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 Systemair AB are associated (or correlated) with AP Moeller. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AP Moeller Maersk has no effect on the direction of Systemair i.e., Systemair and AP Moeller go up and down completely randomly.
Pair Corralation between Systemair and AP Moeller
Assuming the 90 days trading horizon Systemair AB is expected to generate 1.5 times more return on investment than AP Moeller. However, Systemair is 1.5 times more volatile than AP Moeller Maersk AS. It trades about -0.07 of its potential returns per unit of risk. AP Moeller Maersk AS is currently generating about -0.35 per unit of risk. If you would invest 8,890 in Systemair AB on November 3, 2024 and sell it today you would lose (430.00) from holding Systemair AB or give up 4.84% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Systemair AB vs. AP Moeller Maersk AS
Performance |
| Timeline |
| Systemair AB |
| AP Moeller Maersk |
Systemair and AP Moeller Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Systemair and AP Moeller
The main advantage of trading using opposite Systemair and AP Moeller positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Systemair position performs unexpectedly, AP Moeller 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 AP Moeller will offset losses from the drop in AP Moeller's long position.| Systemair vs. Extra Space Storage | Systemair vs. Teradata Corp | Systemair vs. Fidelity National Information | Systemair vs. Erste Group Bank |
| AP Moeller vs. Samsung Electronics Co | AP Moeller vs. Samsung Electronics Co | AP Moeller vs. Toyota Motor Corp | AP Moeller vs. SoftBank Group Corp |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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