Correlation Between DSV Panalpina and EgnsINVEST Ejendomme
Can any of the company-specific risk be diversified away by investing in both DSV Panalpina and EgnsINVEST Ejendomme 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 EgnsINVEST Ejendomme 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 EgnsINVEST Ejendomme Tyskland, you can compare the effects of market volatilities on DSV Panalpina and EgnsINVEST Ejendomme 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 EgnsINVEST Ejendomme. Check out your portfolio center. Please also check ongoing floating volatility patterns of DSV Panalpina and EgnsINVEST Ejendomme.
Diversification Opportunities for DSV Panalpina and EgnsINVEST Ejendomme
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between DSV and EgnsINVEST is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding DSV Panalpina AS and EgnsINVEST Ejendomme Tyskland in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EgnsINVEST Ejendomme 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 EgnsINVEST Ejendomme. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EgnsINVEST Ejendomme has no effect on the direction of DSV Panalpina i.e., DSV Panalpina and EgnsINVEST Ejendomme go up and down completely randomly.
Pair Corralation between DSV Panalpina and EgnsINVEST Ejendomme
Assuming the 90 days trading horizon DSV Panalpina AS is expected to generate 1.02 times more return on investment than EgnsINVEST Ejendomme. However, DSV Panalpina is 1.02 times more volatile than EgnsINVEST Ejendomme Tyskland. It trades about 0.13 of its potential returns per unit of risk. EgnsINVEST Ejendomme Tyskland is currently generating about -0.04 per unit of risk. If you would invest 137,500 in DSV Panalpina AS on September 12, 2024 and sell it today you would earn a total of 16,500 from holding DSV Panalpina AS or generate 12.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
DSV Panalpina AS vs. EgnsINVEST Ejendomme Tyskland
Performance |
| Timeline |
| DSV Panalpina AS |
| EgnsINVEST Ejendomme |
DSV Panalpina and EgnsINVEST Ejendomme Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DSV Panalpina and EgnsINVEST Ejendomme
The main advantage of trading using opposite DSV Panalpina and EgnsINVEST Ejendomme positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DSV Panalpina position performs unexpectedly, EgnsINVEST Ejendomme 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 EgnsINVEST Ejendomme will offset losses from the drop in EgnsINVEST Ejendomme's long position.| DSV Panalpina vs. Genmab AS | DSV Panalpina vs. Danske Bank AS | DSV Panalpina vs. Ambu AS | DSV Panalpina vs. FLSmidth Co |
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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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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