Correlation Between DSV Panalpina and Conferize
Can any of the company-specific risk be diversified away by investing in both DSV Panalpina and Conferize 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 Conferize 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 Conferize AS, you can compare the effects of market volatilities on DSV Panalpina and Conferize 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 Conferize. Check out your portfolio center. Please also check ongoing floating volatility patterns of DSV Panalpina and Conferize.
Diversification Opportunities for DSV Panalpina and Conferize
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between DSV and Conferize is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding DSV Panalpina AS and Conferize AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Conferize AS 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 Conferize. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Conferize AS has no effect on the direction of DSV Panalpina i.e., DSV Panalpina and Conferize go up and down completely randomly.
Pair Corralation between DSV Panalpina and Conferize
Assuming the 90 days trading horizon DSV Panalpina AS is expected to generate 0.12 times more return on investment than Conferize. However, DSV Panalpina AS is 8.57 times less risky than Conferize. It trades about -0.03 of its potential returns per unit of risk. Conferize AS is currently generating about -0.08 per unit of risk. If you would invest 151,900 in DSV Panalpina AS on September 2, 2024 and sell it today you would lose (1,200) from holding DSV Panalpina AS or give up 0.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
DSV Panalpina AS vs. Conferize AS
Performance |
| Timeline |
| DSV Panalpina AS |
| Conferize AS |
DSV Panalpina and Conferize Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DSV Panalpina and Conferize
The main advantage of trading using opposite DSV Panalpina and Conferize positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DSV Panalpina position performs unexpectedly, Conferize 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 Conferize will offset losses from the drop in Conferize's long position.| DSV Panalpina vs. Genmab AS | DSV Panalpina vs. Danske Bank AS | DSV Panalpina vs. Ambu AS | DSV Panalpina vs. FLSmidth Co |
| Conferize vs. FOM Technologies AS | Conferize vs. cBrain AS | Conferize vs. Green Hydrogen Systems | Conferize vs. BioPorto |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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