Correlation Between AP Mller and Dampskibsselskabet
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By analyzing existing cross correlation between AP Mller and Dampskibsselskabet Norden AS, you can compare the effects of market volatilities on AP Mller and Dampskibsselskabet 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 Dampskibsselskabet. Check out your portfolio center. Please also check ongoing floating volatility patterns of AP Mller and Dampskibsselskabet.
Diversification Opportunities for AP Mller and Dampskibsselskabet
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between MAERSK-A and Dampskibsselskabet is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding AP Mller and Dampskibsselskabet Norden AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dampskibsselskabet 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 Dampskibsselskabet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dampskibsselskabet has no effect on the direction of AP Mller i.e., AP Mller and Dampskibsselskabet go up and down completely randomly.
Pair Corralation between AP Mller and Dampskibsselskabet
Assuming the 90 days trading horizon AP Mller is expected to generate 1.04 times more return on investment than Dampskibsselskabet. However, AP Mller is 1.04 times more volatile than Dampskibsselskabet Norden AS. It trades about 0.02 of its potential returns per unit of risk. Dampskibsselskabet Norden AS is currently generating about -0.03 per unit of risk. If you would invest 1,033,187 in AP Mller on September 12, 2024 and sell it today you would earn a total of 134,813 from holding AP Mller or generate 13.05% 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. Dampskibsselskabet Norden AS
Performance |
| Timeline |
| AP Mller |
| Dampskibsselskabet |
AP Mller and Dampskibsselskabet Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AP Mller and Dampskibsselskabet
The main advantage of trading using opposite AP Mller and Dampskibsselskabet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AP Mller position performs unexpectedly, Dampskibsselskabet 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 Dampskibsselskabet will offset losses from the drop in Dampskibsselskabet'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 |
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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 Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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