Correlation Between AP Moeller and Macfarlane Group
Can any of the company-specific risk be diversified away by investing in both AP Moeller and Macfarlane Group 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 AP Moeller and Macfarlane Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AP Moeller Maersk AS and Macfarlane Group PLC, you can compare the effects of market volatilities on AP Moeller and Macfarlane Group 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 AP Moeller with a short position of Macfarlane Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of AP Moeller and Macfarlane Group.
Diversification Opportunities for AP Moeller and Macfarlane Group
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between 0O76 and Macfarlane is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding AP Moeller Maersk AS and Macfarlane Group PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Macfarlane Group PLC and AP Moeller 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 AP Moeller Maersk AS are associated (or correlated) with Macfarlane Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Macfarlane Group PLC has no effect on the direction of AP Moeller i.e., AP Moeller and Macfarlane Group go up and down completely randomly.
Pair Corralation between AP Moeller and Macfarlane Group
Assuming the 90 days trading horizon AP Moeller Maersk AS is expected to generate 2.05 times more return on investment than Macfarlane Group. However, AP Moeller is 2.05 times more volatile than Macfarlane Group PLC. It trades about 0.51 of its potential returns per unit of risk. Macfarlane Group PLC is currently generating about 0.03 per unit of risk. If you would invest 1,017,000 in AP Moeller Maersk AS on November 28, 2024 and sell it today you would earn a total of 249,500 from holding AP Moeller Maersk AS or generate 24.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
AP Moeller Maersk AS vs. Macfarlane Group PLC
Performance |
| Timeline |
| AP Moeller Maersk |
| Macfarlane Group PLC |
AP Moeller and Macfarlane Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AP Moeller and Macfarlane Group
The main advantage of trading using opposite AP Moeller and Macfarlane Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AP Moeller position performs unexpectedly, Macfarlane Group 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 Macfarlane Group will offset losses from the drop in Macfarlane Group's long position.| AP Moeller vs. Lowland Investment Co | AP Moeller vs. Scandinavian Tobacco Group | AP Moeller vs. MTI Wireless Edge | AP Moeller vs. Global Net Lease |
| Macfarlane Group vs. Samsung Electronics Co | Macfarlane Group vs. Samsung Electronics Co | Macfarlane Group vs. Samsung Electronics Co | Macfarlane Group vs. Toyota Motor 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| 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 |