Correlation Between DSV Panalpina and Carnegie Wealth
Can any of the company-specific risk be diversified away by investing in both DSV Panalpina and Carnegie Wealth 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 DSV Panalpina and Carnegie Wealth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DSV Panalpina AS and Carnegie Wealth Management, you can compare the effects of market volatilities on DSV Panalpina and Carnegie Wealth 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 DSV Panalpina with a short position of Carnegie Wealth. Check out your portfolio center. Please also check ongoing floating volatility patterns of DSV Panalpina and Carnegie Wealth.
Diversification Opportunities for DSV Panalpina and Carnegie Wealth
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between DSV and Carnegie is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding DSV Panalpina AS and Carnegie Wealth Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Carnegie Wealth Mana and DSV Panalpina 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 DSV Panalpina AS are associated (or correlated) with Carnegie Wealth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Carnegie Wealth Mana has no effect on the direction of DSV Panalpina i.e., DSV Panalpina and Carnegie Wealth go up and down completely randomly.
Pair Corralation between DSV Panalpina and Carnegie Wealth
Assuming the 90 days trading horizon DSV Panalpina AS is expected to generate 0.99 times more return on investment than Carnegie Wealth. However, DSV Panalpina AS is 1.01 times less risky than Carnegie Wealth. It trades about -0.1 of its potential returns per unit of risk. Carnegie Wealth Management is currently generating about -0.13 per unit of risk. If you would invest 151,800 in DSV Panalpina AS on August 29, 2024 and sell it today you would lose (3,450) from holding DSV Panalpina AS or give up 2.27% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
DSV Panalpina AS vs. Carnegie Wealth Management
Performance |
| Timeline |
| DSV Panalpina AS |
| Carnegie Wealth Mana |
DSV Panalpina and Carnegie Wealth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DSV Panalpina and Carnegie Wealth
The main advantage of trading using opposite DSV Panalpina and Carnegie Wealth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DSV Panalpina position performs unexpectedly, Carnegie Wealth 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 Carnegie Wealth will offset losses from the drop in Carnegie Wealth's long position.| DSV Panalpina vs. GN Store Nord | DSV Panalpina vs. ISS AS | DSV Panalpina vs. Ambu AS | DSV Panalpina vs. Danske Bank AS |
| Carnegie Wealth vs. Djurslands Bank | Carnegie Wealth vs. Nordfyns Bank AS | Carnegie Wealth vs. Groenlandsbanken AS | Carnegie Wealth vs. Kreditbanken AS |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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