Correlation Between AP Moeller and Solstad Offshore
Can any of the company-specific risk be diversified away by investing in both AP Moeller and Solstad Offshore 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 Solstad Offshore 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 Solstad Offshore ASA, you can compare the effects of market volatilities on AP Moeller and Solstad Offshore 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 Solstad Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of AP Moeller and Solstad Offshore.
Diversification Opportunities for AP Moeller and Solstad Offshore
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AMKBY and Solstad is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AP Moeller Maersk AS and Solstad Offshore ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Solstad Offshore ASA 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 Solstad Offshore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Solstad Offshore ASA has no effect on the direction of AP Moeller i.e., AP Moeller and Solstad Offshore go up and down completely randomly.
Pair Corralation between AP Moeller and Solstad Offshore
If you would invest 782.00 in AP Moeller Maersk AS on September 1, 2024 and sell it today you would earn a total of 60.00 from holding AP Moeller Maersk AS or generate 7.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
AP Moeller Maersk AS vs. Solstad Offshore ASA
Performance |
| Timeline |
| AP Moeller Maersk |
| Solstad Offshore ASA |
AP Moeller and Solstad Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AP Moeller and Solstad Offshore
The main advantage of trading using opposite AP Moeller and Solstad Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AP Moeller position performs unexpectedly, Solstad Offshore 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 Solstad Offshore will offset losses from the drop in Solstad Offshore'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 |
| Solstad Offshore vs. Hapag Lloyd Aktiengesellschaft | Solstad Offshore vs. AP Moeller Maersk AS | Solstad Offshore vs. AP Mller | Solstad Offshore vs. COSCO SHIPPING Holdings |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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