Correlation Between AP Moeller and DAmico International
Can any of the company-specific risk be diversified away by investing in both AP Moeller and DAmico International 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 DAmico International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AP Moeller and dAmico International Shipping, you can compare the effects of market volatilities on AP Moeller and DAmico International 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 DAmico International. Check out your portfolio center. Please also check ongoing floating volatility patterns of AP Moeller and DAmico International.
Diversification Opportunities for AP Moeller and DAmico International
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AMKAF and DAmico is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding AP Moeller and dAmico International Shipping in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on dAmico International 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 are associated (or correlated) with DAmico International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of dAmico International has no effect on the direction of AP Moeller i.e., AP Moeller and DAmico International go up and down completely randomly.
Pair Corralation between AP Moeller and DAmico International
Assuming the 90 days horizon AP Moeller is expected to generate 1.02 times more return on investment than DAmico International. However, AP Moeller is 1.02 times more volatile than dAmico International Shipping. It trades about 0.04 of its potential returns per unit of risk. dAmico International Shipping is currently generating about -0.32 per unit of risk. If you would invest 150,000 in AP Moeller on August 28, 2024 and sell it today you would earn a total of 2,160 from holding AP Moeller or generate 1.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AP Moeller vs. dAmico International Shipping
Performance |
| Timeline |
| AP Moeller |
| dAmico International |
AP Moeller and DAmico International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AP Moeller and DAmico International
The main advantage of trading using opposite AP Moeller and DAmico International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AP Moeller position performs unexpectedly, DAmico International 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 DAmico International will offset losses from the drop in DAmico International's long position.| AP Moeller vs. Hapag Lloyd Aktiengesellschaft | AP Moeller vs. Hapag Lloyd Aktiengesellschaft | AP Moeller vs. AP Moeller Maersk AS | AP Moeller vs. SITC International Holdings |
| DAmico International vs. Western Bulk Chartering | DAmico International vs. AP Moeller | DAmico International vs. AP Mller | DAmico International vs. EuroDry |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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