Correlation Between AP Mller and Broendbyernes
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By analyzing existing cross correlation between AP Mller and Broendbyernes IF Fodbold, you can compare the effects of market volatilities on AP Mller and Broendbyernes 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 Broendbyernes. Check out your portfolio center. Please also check ongoing floating volatility patterns of AP Mller and Broendbyernes.
Diversification Opportunities for AP Mller and Broendbyernes
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MAERSK-A and Broendbyernes is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding AP Mller and Broendbyernes IF Fodbold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Broendbyernes IF Fodbold 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 Broendbyernes. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Broendbyernes IF Fodbold has no effect on the direction of AP Mller i.e., AP Mller and Broendbyernes go up and down completely randomly.
Pair Corralation between AP Mller and Broendbyernes
Assuming the 90 days trading horizon AP Mller is expected to generate 0.76 times more return on investment than Broendbyernes. However, AP Mller is 1.31 times less risky than Broendbyernes. It trades about 0.06 of its potential returns per unit of risk. Broendbyernes IF Fodbold is currently generating about -0.03 per unit of risk. If you would invest 878,128 in AP Mller on August 29, 2024 and sell it today you would earn a total of 232,872 from holding AP Mller or generate 26.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AP Mller vs. Broendbyernes IF Fodbold
Performance |
| Timeline |
| AP Mller |
| Broendbyernes IF Fodbold |
AP Mller and Broendbyernes Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AP Mller and Broendbyernes
The main advantage of trading using opposite AP Mller and Broendbyernes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AP Mller position performs unexpectedly, Broendbyernes 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 Broendbyernes will offset losses from the drop in Broendbyernes' long position.The idea behind AP Mller and Broendbyernes IF Fodbold pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Broendbyernes vs. PARKEN Sport Entertainment | Broendbyernes vs. Bang Olufsen | Broendbyernes vs. BioPorto | Broendbyernes vs. cBrain 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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