Correlation Between Komercni Banka and AP Moeller
Can any of the company-specific risk be diversified away by investing in both Komercni Banka 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 Komercni Banka and AP Moeller into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Komercni Banka and AP Moeller Maersk AS, you can compare the effects of market volatilities on Komercni Banka 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 Komercni Banka with a short position of AP Moeller. Check out your portfolio center. Please also check ongoing floating volatility patterns of Komercni Banka and AP Moeller.
Diversification Opportunities for Komercni Banka and AP Moeller
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Komercni and 0O76 is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Komercni Banka 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 Komercni Banka 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 Komercni Banka 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 Komercni Banka i.e., Komercni Banka and AP Moeller go up and down completely randomly.
Pair Corralation between Komercni Banka and AP Moeller
Assuming the 90 days trading horizon Komercni Banka is expected to generate 74.25 times less return on investment than AP Moeller. But when comparing it to its historical volatility, Komercni Banka is 306.16 times less risky than AP Moeller. It trades about 0.05 of its potential returns per unit of risk. AP Moeller Maersk AS is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 1,144,228 in AP Moeller Maersk AS on September 2, 2024 and sell it today you would lose (3,728) from holding AP Moeller Maersk AS or give up 0.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.73% |
| Values | Daily Returns |
Komercni Banka vs. AP Moeller Maersk AS
Performance |
| Timeline |
| Komercni Banka |
| AP Moeller Maersk |
Komercni Banka and AP Moeller Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Komercni Banka and AP Moeller
The main advantage of trading using opposite Komercni Banka and AP Moeller positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Komercni Banka 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.| Komercni Banka vs. Delta Air Lines | Komercni Banka vs. Wizz Air Holdings | Komercni Banka vs. The Mercantile Investment | Komercni Banka vs. Amedeo Air Four |
| AP Moeller vs. Gaztransport et Technigaz | AP Moeller vs. GlobalData PLC | AP Moeller vs. Wheaton Precious Metals | AP Moeller vs. Fidelity National Information |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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