Correlation Between AP Mller and BankInvest Optima
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By analyzing existing cross correlation between AP Mller and BankInvest Optima 30, you can compare the effects of market volatilities on AP Mller and BankInvest Optima 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 BankInvest Optima. Check out your portfolio center. Please also check ongoing floating volatility patterns of AP Mller and BankInvest Optima.
Diversification Opportunities for AP Mller and BankInvest Optima
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between MAERSK-B and BankInvest is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding AP Mller and BankInvest Optima 30 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BankInvest Optima 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 BankInvest Optima. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BankInvest Optima has no effect on the direction of AP Mller i.e., AP Mller and BankInvest Optima go up and down completely randomly.
Pair Corralation between AP Mller and BankInvest Optima
Assuming the 90 days trading horizon AP Mller is expected to under-perform the BankInvest Optima. In addition to that, AP Mller is 7.03 times more volatile than BankInvest Optima 30. It trades about -0.01 of its total potential returns per unit of risk. BankInvest Optima 30 is currently generating about 0.12 per unit of volatility. If you would invest 11,100 in BankInvest Optima 30 on October 18, 2024 and sell it today you would earn a total of 1,225 from holding BankInvest Optima 30 or generate 11.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.93% |
| Values | Daily Returns |
AP Mller vs. BankInvest Optima 30
Performance |
| Timeline |
| AP Mller |
| BankInvest Optima |
AP Mller and BankInvest Optima Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AP Mller and BankInvest Optima
The main advantage of trading using opposite AP Mller and BankInvest Optima positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AP Mller position performs unexpectedly, BankInvest Optima 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 BankInvest Optima will offset losses from the drop in BankInvest Optima'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 |
| BankInvest Optima vs. Novo Nordisk AS | BankInvest Optima vs. Nordea Bank Abp | BankInvest Optima vs. DSV Panalpina AS | BankInvest Optima 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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