Correlation Between AP Mller and Wirtek AS
Specify exactly 2 symbols:
By analyzing existing cross correlation between AP Mller and Wirtek AS, you can compare the effects of market volatilities on AP Mller and Wirtek AS 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 Wirtek AS. Check out your portfolio center. Please also check ongoing floating volatility patterns of AP Mller and Wirtek AS.
Diversification Opportunities for AP Mller and Wirtek AS
Significant diversification
The 3 months correlation between MAERSK-A and Wirtek is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding AP Mller and Wirtek AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wirtek 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 Wirtek AS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wirtek AS has no effect on the direction of AP Mller i.e., AP Mller and Wirtek AS go up and down completely randomly.
Pair Corralation between AP Mller and Wirtek AS
Assuming the 90 days trading horizon AP Mller is expected to generate 0.76 times more return on investment than Wirtek AS. However, AP Mller is 1.32 times less risky than Wirtek AS. It trades about 0.16 of its potential returns per unit of risk. Wirtek AS is currently generating about 0.06 per unit of risk. If you would invest 1,039,722 in AP Mller on November 30, 2024 and sell it today you would earn a total of 204,278 from holding AP Mller or generate 19.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AP Mller vs. Wirtek AS
Performance |
| Timeline |
| AP Mller |
| Wirtek AS |
AP Mller and Wirtek AS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AP Mller and Wirtek AS
The main advantage of trading using opposite AP Mller and Wirtek AS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AP Mller position performs unexpectedly, Wirtek AS 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 Wirtek AS will offset losses from the drop in Wirtek AS'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 |
| Wirtek AS vs. cBrain AS | Wirtek AS vs. FOM Technologies AS | Wirtek AS vs. Penneo AS | Wirtek AS vs. Dataproces Group 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |