Correlation Between DSV Panalpina and ROCKWOOL International
Can any of the company-specific risk be diversified away by investing in both DSV Panalpina and ROCKWOOL International 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 ROCKWOOL International 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 ROCKWOOL International AS, you can compare the effects of market volatilities on DSV Panalpina and ROCKWOOL International 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 ROCKWOOL International. Check out your portfolio center. Please also check ongoing floating volatility patterns of DSV Panalpina and ROCKWOOL International.
Diversification Opportunities for DSV Panalpina and ROCKWOOL International
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between DSV and ROCKWOOL is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding DSV Panalpina AS and ROCKWOOL International AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ROCKWOOL International 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 ROCKWOOL International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ROCKWOOL International has no effect on the direction of DSV Panalpina i.e., DSV Panalpina and ROCKWOOL International go up and down completely randomly.
Pair Corralation between DSV Panalpina and ROCKWOOL International
Assuming the 90 days trading horizon DSV Panalpina AS is expected to generate 0.55 times more return on investment than ROCKWOOL International. However, DSV Panalpina AS is 1.83 times less risky than ROCKWOOL International. It trades about -0.1 of its potential returns per unit of risk. ROCKWOOL International AS is currently generating about -0.06 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 Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
DSV Panalpina AS vs. ROCKWOOL International AS
Performance |
| Timeline |
| DSV Panalpina AS |
| ROCKWOOL International |
DSV Panalpina and ROCKWOOL International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DSV Panalpina and ROCKWOOL International
The main advantage of trading using opposite DSV Panalpina and ROCKWOOL International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DSV Panalpina position performs unexpectedly, ROCKWOOL International 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 ROCKWOOL International will offset losses from the drop in ROCKWOOL International's long position.| DSV Panalpina vs. Genmab AS | DSV Panalpina vs. Danske Bank AS | DSV Panalpina vs. Ambu AS | DSV Panalpina vs. FLSmidth Co |
| ROCKWOOL International vs. FLSmidth Co | ROCKWOOL International vs. GN Store Nord | ROCKWOOL International vs. Ambu AS | ROCKWOOL International vs. DSV Panalpina 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |