Correlation Between Danske Bank and AP Mller
Specify exactly 2 symbols:
By analyzing existing cross correlation between Danske Bank AS and AP Mller , you can compare the effects of market volatilities on Danske Bank 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 Danske Bank with a short position of AP Mller. Check out your portfolio center. Please also check ongoing floating volatility patterns of Danske Bank and AP Mller.
Diversification Opportunities for Danske Bank and AP Mller
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Danske and MAERSK-A is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Danske Bank AS and AP Mller in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AP Mller and Danske Bank 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 Danske Bank AS 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 Danske Bank i.e., Danske Bank and AP Mller go up and down completely randomly.
Pair Corralation between Danske Bank and AP Mller
Assuming the 90 days trading horizon Danske Bank is expected to generate 38.12 times less return on investment than AP Mller. But when comparing it to its historical volatility, Danske Bank AS is 2.36 times less risky than AP Mller. It trades about 0.01 of its potential returns per unit of risk. AP Mller is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 1,004,000 in AP Mller on August 28, 2024 and sell it today you would earn a total of 119,000 from holding AP Mller or generate 11.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Danske Bank AS vs. AP Mller
Performance |
| Timeline |
| Danske Bank AS |
| AP Mller |
Danske Bank and AP Mller Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Danske Bank and AP Mller
The main advantage of trading using opposite Danske Bank and AP Mller positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Danske Bank 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.| Danske Bank vs. Bavarian Nordic | Danske Bank vs. DSV Panalpina AS | Danske Bank vs. Vestas Wind Systems | Danske Bank vs. Ambu AS |
| AP Mller vs. Danske Bank AS | AP Mller vs. DSV Panalpina AS | AP Mller vs. Vestas Wind Systems | AP Mller vs. Bavarian Nordic |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |