Correlation Between DSV Panalpina and Flgger Group
Can any of the company-specific risk be diversified away by investing in both DSV Panalpina and Flgger Group 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 Flgger Group 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 Flgger group AS, you can compare the effects of market volatilities on DSV Panalpina and Flgger Group 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 Flgger Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of DSV Panalpina and Flgger Group.
Diversification Opportunities for DSV Panalpina and Flgger Group
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between DSV and Flgger is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding DSV Panalpina AS and Flgger group AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Flgger group 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 Flgger Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Flgger group AS has no effect on the direction of DSV Panalpina i.e., DSV Panalpina and Flgger Group go up and down completely randomly.
Pair Corralation between DSV Panalpina and Flgger Group
Assuming the 90 days trading horizon DSV Panalpina is expected to generate 1.1 times less return on investment than Flgger Group. In addition to that, DSV Panalpina is 1.04 times more volatile than Flgger group AS. It trades about 0.1 of its total potential returns per unit of risk. Flgger group AS is currently generating about 0.12 per unit of volatility. If you would invest 32,400 in Flgger group AS on September 19, 2024 and sell it today you would earn a total of 800.00 from holding Flgger group AS or generate 2.47% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 95.65% |
Values | Daily Returns |
DSV Panalpina AS vs. Flgger group AS
Performance |
Timeline |
DSV Panalpina AS |
Flgger group AS |
DSV Panalpina and Flgger Group Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with DSV Panalpina and Flgger Group
The main advantage of trading using opposite DSV Panalpina and Flgger Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DSV Panalpina position performs unexpectedly, Flgger Group 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 Flgger Group will offset losses from the drop in Flgger Group's long position.DSV Panalpina vs. Genmab AS | ||
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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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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