Correlation Between AP Moeller-Maersk and Kane Biotech
Can any of the company-specific risk be diversified away by investing in both AP Moeller-Maersk and Kane Biotech 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-Maersk and Kane Biotech 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 Kane Biotech, you can compare the effects of market volatilities on AP Moeller-Maersk and Kane Biotech 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-Maersk with a short position of Kane Biotech. Check out your portfolio center. Please also check ongoing floating volatility patterns of AP Moeller-Maersk and Kane Biotech.
Diversification Opportunities for AP Moeller-Maersk and Kane Biotech
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between AMKBY and Kane is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding AP Moeller Maersk AS and Kane Biotech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kane Biotech and AP Moeller-Maersk 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 Kane Biotech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kane Biotech has no effect on the direction of AP Moeller-Maersk i.e., AP Moeller-Maersk and Kane Biotech go up and down completely randomly.
Pair Corralation between AP Moeller-Maersk and Kane Biotech
Assuming the 90 days horizon AP Moeller Maersk AS is expected to generate 0.55 times more return on investment than Kane Biotech. However, AP Moeller Maersk AS is 1.81 times less risky than Kane Biotech. It trades about -0.07 of its potential returns per unit of risk. Kane Biotech is currently generating about -0.05 per unit of risk. If you would invest 834.00 in AP Moeller Maersk AS on November 2, 2024 and sell it today you would lose (105.00) from holding AP Moeller Maersk AS or give up 12.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.36% |
| Values | Daily Returns |
AP Moeller Maersk AS vs. Kane Biotech
Performance |
| Timeline |
| AP Moeller Maersk |
| Kane Biotech |
AP Moeller-Maersk and Kane Biotech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AP Moeller-Maersk and Kane Biotech
The main advantage of trading using opposite AP Moeller-Maersk and Kane Biotech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AP Moeller-Maersk position performs unexpectedly, Kane Biotech 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 Kane Biotech will offset losses from the drop in Kane Biotech's long position.| AP Moeller-Maersk vs. Hapag Lloyd Aktiengesellschaft | AP Moeller-Maersk vs. Nippon Yusen Kabushiki | AP Moeller-Maersk vs. COSCO SHIPPING Holdings | AP Moeller-Maersk vs. AP Moeller |
| Kane Biotech vs. Pharming Group NV | Kane Biotech vs. Health Sciences Gr | Kane Biotech vs. MedMira | Kane Biotech vs. Oxford Cannabinoid Technologies |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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