Correlation Between AP Mller and ROCKWOOL International
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By analyzing existing cross correlation between AP Mller and ROCKWOOL International AS, you can compare the effects of market volatilities on AP Mller and ROCKWOOL International 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 ROCKWOOL International. Check out your portfolio center. Please also check ongoing floating volatility patterns of AP Mller and ROCKWOOL International.
Diversification Opportunities for AP Mller and ROCKWOOL International
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between MAERSK-A and ROCKWOOL is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding AP Mller and ROCKWOOL International AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ROCKWOOL International 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 ROCKWOOL International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ROCKWOOL International has no effect on the direction of AP Mller i.e., AP Mller and ROCKWOOL International go up and down completely randomly.
Pair Corralation between AP Mller and ROCKWOOL International
Assuming the 90 days trading horizon AP Mller is expected to generate 1.25 times more return on investment than ROCKWOOL International. However, AP Mller is 1.25 times more volatile than ROCKWOOL International AS. It trades about 0.01 of its potential returns per unit of risk. ROCKWOOL International AS is currently generating about -0.02 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 | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AP Mller vs. ROCKWOOL International AS
Performance |
| Timeline |
| AP Mller |
| ROCKWOOL International |
AP Mller and ROCKWOOL International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AP Mller and ROCKWOOL International
The main advantage of trading using opposite AP Mller and ROCKWOOL International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AP Mller position performs unexpectedly, ROCKWOOL International 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 ROCKWOOL International will offset losses from the drop in ROCKWOOL International'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 |
| ROCKWOOL International vs. ROCKWOOL International AS | ROCKWOOL International vs. FLSmidth Co | ROCKWOOL International vs. Royal Unibrew AS | ROCKWOOL International vs. Tryg 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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