Correlation Between COSCO SHIPPING and AP Mller
Can any of the company-specific risk be diversified away by investing in both COSCO SHIPPING and AP Mller 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 COSCO SHIPPING and AP Mller into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between COSCO SHIPPING Holdings and AP Mller , you can compare the effects of market volatilities on COSCO SHIPPING 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 COSCO SHIPPING with a short position of AP Mller. Check out your portfolio center. Please also check ongoing floating volatility patterns of COSCO SHIPPING and AP Mller.
Diversification Opportunities for COSCO SHIPPING and AP Mller
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between COSCO and AMKBF is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding COSCO SHIPPING Holdings and AP Mller in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AP Mller and COSCO SHIPPING 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 COSCO SHIPPING Holdings 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 COSCO SHIPPING i.e., COSCO SHIPPING and AP Mller go up and down completely randomly.
Pair Corralation between COSCO SHIPPING and AP Mller
Assuming the 90 days horizon COSCO SHIPPING Holdings is expected to generate 2.66 times more return on investment than AP Mller. However, COSCO SHIPPING is 2.66 times more volatile than AP Mller . It trades about 0.02 of its potential returns per unit of risk. AP Mller is currently generating about -0.03 per unit of risk. If you would invest 164.00 in COSCO SHIPPING Holdings on September 1, 2024 and sell it today you would lose (20.00) from holding COSCO SHIPPING Holdings or give up 12.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.41% |
| Values | Daily Returns |
COSCO SHIPPING Holdings vs. AP Mller
Performance |
| Timeline |
| COSCO SHIPPING Holdings |
| AP Mller |
COSCO SHIPPING and AP Mller Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COSCO SHIPPING and AP Mller
The main advantage of trading using opposite COSCO SHIPPING and AP Mller positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COSCO SHIPPING 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.| COSCO SHIPPING vs. Hapag Lloyd Aktiengesellschaft | COSCO SHIPPING vs. AP Moeller Maersk AS | COSCO SHIPPING vs. AP Mller | COSCO SHIPPING vs. COSCO SHIPPING Holdings |
| AP Mller vs. Mitsui OSK Lines | AP Mller vs. Hapag Lloyd Aktiengesellschaft | AP Mller vs. Orient Overseas Limited | AP Mller vs. Hapag Lloyd Aktiengesellschaft |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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