Correlation Between AP Mller and Conferize
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By analyzing existing cross correlation between AP Mller and Conferize AS, you can compare the effects of market volatilities on AP Mller and Conferize 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 Conferize. Check out your portfolio center. Please also check ongoing floating volatility patterns of AP Mller and Conferize.
Diversification Opportunities for AP Mller and Conferize
Pay attention - limited upside
The 3 months correlation between MAERSK-A and Conferize is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding AP Mller and Conferize AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Conferize 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 Conferize. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Conferize AS has no effect on the direction of AP Mller i.e., AP Mller and Conferize go up and down completely randomly.
Pair Corralation between AP Mller and Conferize
Assuming the 90 days trading horizon AP Mller is expected to generate 0.29 times more return on investment than Conferize. However, AP Mller is 3.43 times less risky than Conferize. It trades about 0.07 of its potential returns per unit of risk. Conferize AS is currently generating about -0.03 per unit of risk. If you would invest 1,078,000 in AP Mller on August 25, 2024 and sell it today you would earn a total of 76,000 from holding AP Mller or generate 7.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AP Mller vs. Conferize AS
Performance |
| Timeline |
| AP Mller |
| Conferize AS |
AP Mller and Conferize Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AP Mller and Conferize
The main advantage of trading using opposite AP Mller and Conferize positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AP Mller position performs unexpectedly, Conferize 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 Conferize will offset losses from the drop in Conferize'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 |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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