Correlation Between ALK Abell and AP Mller
Specify exactly 2 symbols:
By analyzing existing cross correlation between ALK Abell AS and AP Mller , you can compare the effects of market volatilities on ALK Abell and AP Mller 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 ALK Abell with a short position of AP Mller. Check out your portfolio center. Please also check ongoing floating volatility patterns of ALK Abell and AP Mller.
Diversification Opportunities for ALK Abell and AP Mller
Weak diversification
The 3 months correlation between ALK and MAERSK-A is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding ALK Abell AS and AP Mller in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AP Mller and ALK Abell 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 ALK Abell AS are associated (or correlated) with AP Mller. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AP Mller has no effect on the direction of ALK Abell i.e., ALK Abell and AP Mller go up and down completely randomly.
Pair Corralation between ALK Abell and AP Mller
Assuming the 90 days trading horizon ALK Abell is expected to generate 36.39 times less return on investment than AP Mller. But when comparing it to its historical volatility, ALK Abell AS is 1.12 times less risky than AP Mller. It trades about 0.02 of its potential returns per unit of risk. AP Mller is currently generating about 0.49 of returns per unit of risk over similar time horizon. If you would invest 920,794 in AP Mller on November 27, 2024 and sell it today you would earn a total of 322,206 from holding AP Mller or generate 34.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ALK Abell AS vs. AP Mller
Performance |
| Timeline |
| ALK Abell AS |
| AP Mller |
ALK Abell and AP Mller Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ALK Abell and AP Mller
The main advantage of trading using opposite ALK Abell and AP Mller positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ALK Abell position performs unexpectedly, AP Mller 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 Mller will offset losses from the drop in AP Mller's long position.The idea behind ALK Abell AS and AP Mller 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.| AP Mller vs. AP Mller | AP Mller vs. DSV Panalpina AS | AP Mller vs. Danske Bank AS | AP Mller vs. FLSmidth Co |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Commodity Directory Find actively traded commodities issued by global exchanges |