Correlation Between AP Mller and North Media
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By analyzing existing cross correlation between AP Mller and North Media AS, you can compare the effects of market volatilities on AP Mller and North Media 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 North Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of AP Mller and North Media.
Diversification Opportunities for AP Mller and North Media
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between MAERSK-A and North is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding AP Mller and North Media AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on North Media 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 North Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of North Media AS has no effect on the direction of AP Mller i.e., AP Mller and North Media go up and down completely randomly.
Pair Corralation between AP Mller and North Media
Assuming the 90 days trading horizon AP Mller is expected to generate 1.45 times more return on investment than North Media. However, AP Mller is 1.45 times more volatile than North Media AS. It trades about 0.01 of its potential returns per unit of risk. North Media AS is currently generating about -0.02 per unit of risk. If you would invest 1,121,134 in AP Mller on August 29, 2024 and sell it today you would lose (9,134) from holding AP Mller or give up 0.81% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AP Mller vs. North Media AS
Performance |
| Timeline |
| AP Mller |
| North Media AS |
AP Mller and North Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AP Mller and North Media
The main advantage of trading using opposite AP Mller and North Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AP Mller position performs unexpectedly, North Media 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 North Media will offset losses from the drop in North Media'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 |
| North Media vs. Matas AS | North Media vs. cBrain AS | North Media vs. Alm Brand | North Media vs. Netcompany Group 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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