Correlation Between AP Mller and Accunia Inv
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By analyzing existing cross correlation between AP Mller and Accunia Inv European, you can compare the effects of market volatilities on AP Mller and Accunia Inv 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 Accunia Inv. Check out your portfolio center. Please also check ongoing floating volatility patterns of AP Mller and Accunia Inv.
Diversification Opportunities for AP Mller and Accunia Inv
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between MAERSK-B and Accunia is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding AP Mller and Accunia Inv European in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Accunia Inv European 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 Accunia Inv. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Accunia Inv European has no effect on the direction of AP Mller i.e., AP Mller and Accunia Inv go up and down completely randomly.
Pair Corralation between AP Mller and Accunia Inv
Assuming the 90 days trading horizon AP Mller is expected to generate 11.36 times more return on investment than Accunia Inv. However, AP Mller is 11.36 times more volatile than Accunia Inv European. It trades about 0.18 of its potential returns per unit of risk. Accunia Inv European is currently generating about -0.03 per unit of risk. If you would invest 1,080,000 in AP Mller on September 1, 2024 and sell it today you would earn a total of 117,500 from holding AP Mller or generate 10.88% 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. Accunia Inv European
Performance |
| Timeline |
| AP Mller |
| Accunia Inv European |
AP Mller and Accunia Inv Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AP Mller and Accunia Inv
The main advantage of trading using opposite AP Mller and Accunia Inv positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AP Mller position performs unexpectedly, Accunia Inv 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 Accunia Inv will offset losses from the drop in Accunia Inv's long position.| AP Mller vs. Danske Bank AS | AP Mller vs. DSV Panalpina AS | AP Mller vs. AP Mller | AP Mller vs. Vestas Wind Systems |
| Accunia Inv vs. Nordea Bank Abp | Accunia Inv vs. North Media AS | Accunia Inv vs. NTG Nordic Transport | Accunia Inv vs. Fynske Bank 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.
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