Correlation Between AP Mller and Nordea Invest
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By analyzing existing cross correlation between AP Mller and Nordea Invest Danske, you can compare the effects of market volatilities on AP Mller and Nordea Invest 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 Nordea Invest. Check out your portfolio center. Please also check ongoing floating volatility patterns of AP Mller and Nordea Invest.
Diversification Opportunities for AP Mller and Nordea Invest
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MAERSK-A and Nordea is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding AP Mller and Nordea Invest Danske in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nordea Invest Danske 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 Nordea Invest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nordea Invest Danske has no effect on the direction of AP Mller i.e., AP Mller and Nordea Invest go up and down completely randomly.
Pair Corralation between AP Mller and Nordea Invest
Assuming the 90 days trading horizon AP Mller is expected to under-perform the Nordea Invest. In addition to that, AP Mller is 2.38 times more volatile than Nordea Invest Danske. It trades about -0.14 of its total potential returns per unit of risk. Nordea Invest Danske is currently generating about -0.04 per unit of volatility. If you would invest 17,860 in Nordea Invest Danske on October 22, 2024 and sell it today you would lose (290.00) from holding Nordea Invest Danske or give up 1.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AP Mller vs. Nordea Invest Danske
Performance |
| Timeline |
| AP Mller |
| Nordea Invest Danske |
AP Mller and Nordea Invest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AP Mller and Nordea Invest
The main advantage of trading using opposite AP Mller and Nordea Invest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AP Mller position performs unexpectedly, Nordea Invest 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 Nordea Invest will offset losses from the drop in Nordea Invest'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 |
| Nordea Invest vs. Moens Bank AS | Nordea Invest vs. BankIn Bredygt Klimaakt | Nordea Invest vs. NTG Nordic Transport | Nordea Invest vs. Alefarm Brewing 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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