Correlation Between AP Mller and Ringkjoebing Landbobank
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By analyzing existing cross correlation between AP Mller and Ringkjoebing Landbobank AS, you can compare the effects of market volatilities on AP Mller and Ringkjoebing Landbobank 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 Ringkjoebing Landbobank. Check out your portfolio center. Please also check ongoing floating volatility patterns of AP Mller and Ringkjoebing Landbobank.
Diversification Opportunities for AP Mller and Ringkjoebing Landbobank
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between MAERSK-A and Ringkjoebing is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding AP Mller and Ringkjoebing Landbobank AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ringkjoebing Landbobank 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 Ringkjoebing Landbobank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ringkjoebing Landbobank has no effect on the direction of AP Mller i.e., AP Mller and Ringkjoebing Landbobank go up and down completely randomly.
Pair Corralation between AP Mller and Ringkjoebing Landbobank
Assuming the 90 days trading horizon AP Mller is expected to generate 1.85 times more return on investment than Ringkjoebing Landbobank. However, AP Mller is 1.85 times more volatile than Ringkjoebing Landbobank AS. It trades about 0.01 of its potential returns per unit of risk. Ringkjoebing Landbobank AS is currently generating about -0.01 per unit of risk. If you would invest 1,178,000 in AP Mller on September 3, 2024 and sell it today you would lose (21,000) from holding AP Mller or give up 1.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AP Mller vs. Ringkjoebing Landbobank AS
Performance |
| Timeline |
| AP Mller |
| Ringkjoebing Landbobank |
AP Mller and Ringkjoebing Landbobank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AP Mller and Ringkjoebing Landbobank
The main advantage of trading using opposite AP Mller and Ringkjoebing Landbobank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AP Mller position performs unexpectedly, Ringkjoebing Landbobank 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 Ringkjoebing Landbobank will offset losses from the drop in Ringkjoebing Landbobank'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 |
| Ringkjoebing Landbobank vs. Sydbank AS | Ringkjoebing Landbobank vs. Jyske Bank AS | Ringkjoebing Landbobank vs. Royal Unibrew AS | Ringkjoebing Landbobank vs. Spar Nord 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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