Correlation Between AP Mller and Trifork Holding
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By analyzing existing cross correlation between AP Mller and Trifork Holding AG, you can compare the effects of market volatilities on AP Mller and Trifork Holding 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 Trifork Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of AP Mller and Trifork Holding.
Diversification Opportunities for AP Mller and Trifork Holding
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MAERSK-A and Trifork is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding AP Mller and Trifork Holding AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trifork Holding AG 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 Trifork Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trifork Holding AG has no effect on the direction of AP Mller i.e., AP Mller and Trifork Holding go up and down completely randomly.
Pair Corralation between AP Mller and Trifork Holding
Assuming the 90 days trading horizon AP Mller is expected to generate 1.07 times more return on investment than Trifork Holding. However, AP Mller is 1.07 times more volatile than Trifork Holding AG. It trades about 0.01 of its potential returns per unit of risk. Trifork Holding AG is currently generating about -0.05 per unit of risk. If you would invest 1,033,187 in AP Mller on November 5, 2024 and sell it today you would earn a total of 8,813 from holding AP Mller or generate 0.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AP Mller vs. Trifork Holding AG
Performance |
| Timeline |
| AP Mller |
| Trifork Holding AG |
AP Mller and Trifork Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AP Mller and Trifork Holding
The main advantage of trading using opposite AP Mller and Trifork Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AP Mller position performs unexpectedly, Trifork Holding 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 Trifork Holding will offset losses from the drop in Trifork Holding'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 |
| Trifork Holding vs. Novo Nordisk AS | Trifork Holding vs. Nordea Bank Abp | Trifork Holding vs. DSV Panalpina AS | Trifork Holding vs. AP Mller |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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