Correlation Between GlobalData PLC and AP Moeller
Can any of the company-specific risk be diversified away by investing in both GlobalData PLC and AP Moeller 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 GlobalData PLC and AP Moeller into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GlobalData PLC and AP Moeller Maersk AS, you can compare the effects of market volatilities on GlobalData PLC and AP Moeller 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 GlobalData PLC with a short position of AP Moeller. Check out your portfolio center. Please also check ongoing floating volatility patterns of GlobalData PLC and AP Moeller.
Diversification Opportunities for GlobalData PLC and AP Moeller
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between GlobalData and 0O76 is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding GlobalData PLC and AP Moeller Maersk AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AP Moeller Maersk and GlobalData PLC 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 GlobalData PLC are associated (or correlated) with AP Moeller. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AP Moeller Maersk has no effect on the direction of GlobalData PLC i.e., GlobalData PLC and AP Moeller go up and down completely randomly.
Pair Corralation between GlobalData PLC and AP Moeller
Assuming the 90 days trading horizon GlobalData PLC is expected to generate 0.82 times more return on investment than AP Moeller. However, GlobalData PLC is 1.21 times less risky than AP Moeller. It trades about 0.03 of its potential returns per unit of risk. AP Moeller Maersk AS is currently generating about 0.01 per unit of risk. If you would invest 16,524 in GlobalData PLC on September 3, 2024 and sell it today you would earn a total of 3,676 from holding GlobalData PLC or generate 22.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
GlobalData PLC vs. AP Moeller Maersk AS
Performance |
| Timeline |
| GlobalData PLC |
| AP Moeller Maersk |
GlobalData PLC and AP Moeller Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GlobalData PLC and AP Moeller
The main advantage of trading using opposite GlobalData PLC and AP Moeller positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GlobalData PLC position performs unexpectedly, AP Moeller 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 Moeller will offset losses from the drop in AP Moeller's long position.| GlobalData PLC vs. Catalyst Media Group | GlobalData PLC vs. CATLIN GROUP | GlobalData PLC vs. RTW Venture Fund | GlobalData PLC vs. Secure Property Development |
| AP Moeller vs. Martin Marietta Materials | AP Moeller vs. Fevertree Drinks Plc | AP Moeller vs. Young Cos Brewery | AP Moeller vs. Applied Materials |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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