Correlation Between AP Mller and PFA Invest
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By analyzing existing cross correlation between AP Mller and PFA Invest Kreditobligationer, you can compare the effects of market volatilities on AP Mller and PFA 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 PFA Invest. Check out your portfolio center. Please also check ongoing floating volatility patterns of AP Mller and PFA Invest.
Diversification Opportunities for AP Mller and PFA Invest
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between MAERSK-A and PFA is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding AP Mller and PFA Invest Kreditobligationer in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PFA Invest Kreditobl 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 PFA Invest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PFA Invest Kreditobl has no effect on the direction of AP Mller i.e., AP Mller and PFA Invest go up and down completely randomly.
Pair Corralation between AP Mller and PFA Invest
Assuming the 90 days trading horizon AP Mller is expected to generate 31.68 times more return on investment than PFA Invest. However, AP Mller is 31.68 times more volatile than PFA Invest Kreditobligationer. It trades about 0.24 of its potential returns per unit of risk. PFA Invest Kreditobligationer is currently generating about 0.35 per unit of risk. If you would invest 967,000 in AP Mller on August 31, 2024 and sell it today you would earn a total of 167,000 from holding AP Mller or generate 17.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
AP Mller vs. PFA Invest Kreditobligationer
Performance |
| Timeline |
| AP Mller |
| PFA Invest Kreditobl |
AP Mller and PFA Invest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AP Mller and PFA Invest
The main advantage of trading using opposite AP Mller and PFA Invest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AP Mller position performs unexpectedly, PFA 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 PFA Invest will offset losses from the drop in PFA 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 |
| PFA Invest vs. Dataproces Group AS | PFA Invest vs. Moens Bank AS | PFA Invest vs. BankIn Bredygt Klimaakt | PFA Invest vs. BankInvest Value Globale |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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