Correlation Between AP Mller and HH International
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By analyzing existing cross correlation between AP Mller and HH International AS, you can compare the effects of market volatilities on AP Mller and HH 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 AP Mller with a short position of HH International. Check out your portfolio center. Please also check ongoing floating volatility patterns of AP Mller and HH International.
Diversification Opportunities for AP Mller and HH International
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between MAERSK-A and HH International is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding AP Mller and HH International AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HH International 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 HH International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HH International has no effect on the direction of AP Mller i.e., AP Mller and HH International go up and down completely randomly.
Pair Corralation between AP Mller and HH International
Assuming the 90 days trading horizon AP Mller is expected to generate 2.24 times more return on investment than HH International. However, AP Mller is 2.24 times more volatile than HH International AS. It trades about 0.15 of its potential returns per unit of risk. HH International AS is currently generating about -0.25 per unit of risk. If you would invest 1,004,000 in AP Mller on August 29, 2024 and sell it today you would earn a total of 108,000 from holding AP Mller or generate 10.76% 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. HH International AS
Performance |
| Timeline |
| AP Mller |
| HH International |
AP Mller and HH International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AP Mller and HH International
The main advantage of trading using opposite AP Mller and HH International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AP Mller position performs unexpectedly, HH 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 HH International will offset losses from the drop in HH International's long position.The idea behind AP Mller and HH International AS 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.| HH International vs. ROCKWOOL International AS | HH International vs. Per Aarsleff Holding | HH International vs. Matas AS | HH International vs. DFDS 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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