Correlation Between AP Mller and Demant AS
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By analyzing existing cross correlation between AP Mller and Demant AS, you can compare the effects of market volatilities on AP Mller and Demant 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 Demant AS. Check out your portfolio center. Please also check ongoing floating volatility patterns of AP Mller and Demant AS.
Diversification Opportunities for AP Mller and Demant AS
Excellent diversification
The 3 months correlation between MAERSK-B and Demant is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding AP Mller and Demant AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Demant 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 Demant AS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Demant AS has no effect on the direction of AP Mller i.e., AP Mller and Demant AS go up and down completely randomly.
Pair Corralation between AP Mller and Demant AS
Assuming the 90 days trading horizon AP Mller is expected to generate 1.36 times more return on investment than Demant AS. However, AP Mller is 1.36 times more volatile than Demant AS. It trades about 0.02 of its potential returns per unit of risk. Demant AS is currently generating about -0.01 per unit of risk. If you would invest 1,147,261 in AP Mller on August 25, 2024 and sell it today you would earn a total of 53,239 from holding AP Mller or generate 4.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AP Mller vs. Demant AS
Performance |
| Timeline |
| AP Mller |
| Demant AS |
AP Mller and Demant AS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AP Mller and Demant AS
The main advantage of trading using opposite AP Mller and Demant AS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AP Mller position performs unexpectedly, Demant 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 Demant AS will offset losses from the drop in Demant AS'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 |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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