Correlation Between AP Mller and Ambu AS
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By analyzing existing cross correlation between AP Mller and Ambu AS, you can compare the effects of market volatilities on AP Mller and Ambu AS 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 AP Mller with a short position of Ambu AS. Check out your portfolio center. Please also check ongoing floating volatility patterns of AP Mller and Ambu AS.
Diversification Opportunities for AP Mller and Ambu AS
Pay attention - limited upside
The 3 months correlation between MAERSK-A and Ambu is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding AP Mller and Ambu AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ambu AS and AP Mller 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 AP Mller are associated (or correlated) with Ambu AS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ambu AS has no effect on the direction of AP Mller i.e., AP Mller and Ambu AS go up and down completely randomly.
Pair Corralation between AP Mller and Ambu AS
Assuming the 90 days trading horizon AP Mller is expected to generate 2.23 times less return on investment than Ambu AS. But when comparing it to its historical volatility, AP Mller is 1.13 times less risky than Ambu AS. It trades about 0.02 of its potential returns per unit of risk. Ambu AS is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 11,705 in Ambu AS on November 5, 2024 and sell it today you would earn a total of 1,670 from holding Ambu AS or generate 14.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AP Mller vs. Ambu AS
Performance |
| Timeline |
| AP Mller |
| Ambu AS |
AP Mller and Ambu AS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AP Mller and Ambu AS
The main advantage of trading using opposite AP Mller and Ambu AS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AP Mller position performs unexpectedly, Ambu AS 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 Ambu AS will offset losses from the drop in Ambu AS's long position.| AP Mller vs. AP Mller | AP Mller vs. DSV Panalpina AS | AP Mller vs. Danske Bank AS | AP Mller vs. FLSmidth Co |
| Ambu AS vs. Bavarian Nordic | Ambu AS vs. Genmab AS | Ambu AS vs. GN Store Nord | Ambu AS 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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