Correlation Between AP Moeller and Nippon Yusen
Can any of the company-specific risk be diversified away by investing in both AP Moeller and Nippon Yusen 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 Nippon Yusen 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 Nippon Yusen Kabushiki, you can compare the effects of market volatilities on AP Moeller and Nippon Yusen 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 Nippon Yusen. Check out your portfolio center. Please also check ongoing floating volatility patterns of AP Moeller and Nippon Yusen.
Diversification Opportunities for AP Moeller and Nippon Yusen
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between AMKBY and Nippon is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding AP Moeller Maersk AS and Nippon Yusen Kabushiki in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nippon Yusen Kabushiki 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 Nippon Yusen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nippon Yusen Kabushiki has no effect on the direction of AP Moeller i.e., AP Moeller and Nippon Yusen go up and down completely randomly.
Pair Corralation between AP Moeller and Nippon Yusen
If you would invest 772.00 in AP Moeller Maersk AS on August 25, 2024 and sell it today you would earn a total of 64.00 from holding AP Moeller Maersk AS or generate 8.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 1.56% |
| Values | Daily Returns |
AP Moeller Maersk AS vs. Nippon Yusen Kabushiki
Performance |
| Timeline |
| AP Moeller Maersk |
| Nippon Yusen Kabushiki |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
AP Moeller and Nippon Yusen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AP Moeller and Nippon Yusen
The main advantage of trading using opposite AP Moeller and Nippon Yusen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AP Moeller position performs unexpectedly, Nippon Yusen 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 Nippon Yusen will offset losses from the drop in Nippon Yusen's long position.| AP Moeller vs. Hapag Lloyd Aktiengesellschaft | AP Moeller vs. Nippon Yusen Kabushiki | AP Moeller vs. COSCO SHIPPING Holdings | AP Moeller vs. AP Moeller |
| Nippon Yusen vs. Mitsui OSK Lines | Nippon Yusen vs. SITC International Holdings | Nippon Yusen vs. Orient Overseas Limited | Nippon Yusen vs. Western Bulk Chartering |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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