Correlation Between DSV Panalpina and GN Store
Can any of the company-specific risk be diversified away by investing in both DSV Panalpina and GN Store 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 GN Store 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 GN Store Nord, you can compare the effects of market volatilities on DSV Panalpina and GN Store 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 GN Store. Check out your portfolio center. Please also check ongoing floating volatility patterns of DSV Panalpina and GN Store.
Diversification Opportunities for DSV Panalpina and GN Store
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between DSV and GN Store is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding DSV Panalpina AS and GN Store Nord in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GN Store Nord 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 GN Store. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GN Store Nord has no effect on the direction of DSV Panalpina i.e., DSV Panalpina and GN Store go up and down completely randomly.
Pair Corralation between DSV Panalpina and GN Store
Assuming the 90 days trading horizon DSV Panalpina AS is expected to generate 0.92 times more return on investment than GN Store. However, DSV Panalpina AS is 1.08 times less risky than GN Store. It trades about 0.16 of its potential returns per unit of risk. GN Store Nord is currently generating about -0.09 per unit of risk. If you would invest 123,500 in DSV Panalpina AS on August 28, 2024 and sell it today you would earn a total of 24,850 from holding DSV Panalpina AS or generate 20.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
DSV Panalpina AS vs. GN Store Nord
Performance |
| Timeline |
| DSV Panalpina AS |
| GN Store Nord |
DSV Panalpina and GN Store Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DSV Panalpina and GN Store
The main advantage of trading using opposite DSV Panalpina and GN Store positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DSV Panalpina position performs unexpectedly, GN Store 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 GN Store will offset losses from the drop in GN Store's long position.| DSV Panalpina vs. Genmab AS | DSV Panalpina vs. Danske Bank AS | DSV Panalpina vs. Ambu AS | DSV Panalpina vs. FLSmidth Co |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |