Correlation Between AP Mller and Novonesis
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By analyzing existing cross correlation between AP Mller and Novonesis AS, you can compare the effects of market volatilities on AP Mller and Novonesis 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 Novonesis. Check out your portfolio center. Please also check ongoing floating volatility patterns of AP Mller and Novonesis.
Diversification Opportunities for AP Mller and Novonesis
Good diversification
The 3 months correlation between MAERSK-A and Novonesis is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding AP Mller and Novonesis AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Novonesis 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 Novonesis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Novonesis AS has no effect on the direction of AP Mller i.e., AP Mller and Novonesis go up and down completely randomly.
Pair Corralation between AP Mller and Novonesis
Assuming the 90 days trading horizon AP Mller is expected to generate 3.39 times more return on investment than Novonesis. However, AP Mller is 3.39 times more volatile than Novonesis AS. It trades about 0.52 of its potential returns per unit of risk. Novonesis AS is currently generating about -0.04 per unit of risk. If you would invest 920,794 in AP Mller on November 28, 2024 and sell it today you would earn a total of 357,206 from holding AP Mller or generate 38.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
AP Mller vs. Novonesis AS
Performance |
| Timeline |
| AP Mller |
| Novonesis AS |
AP Mller and Novonesis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AP Mller and Novonesis
The main advantage of trading using opposite AP Mller and Novonesis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AP Mller position performs unexpectedly, Novonesis 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 Novonesis will offset losses from the drop in Novonesis' long position.| AP Mller vs. AP Mller | AP Mller vs. DSV Panalpina AS | AP Mller vs. Danske Bank AS | AP Mller vs. FLSmidth Co |
| Novonesis vs. Skjern Bank AS | Novonesis vs. Jyske Bank AS | Novonesis vs. Ringkjoebing Landbobank AS | Novonesis vs. Hvidbjerg Bank |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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