Correlation Between AP Mller and Danske Invest
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By analyzing existing cross correlation between AP Mller and Danske Invest Danmark, you can compare the effects of market volatilities on AP Mller and Danske Invest 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 Danske Invest. Check out your portfolio center. Please also check ongoing floating volatility patterns of AP Mller and Danske Invest.
Diversification Opportunities for AP Mller and Danske Invest
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between MAERSK-B and Danske is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding AP Mller and Danske Invest Danmark in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Danske Invest Danmark 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 Danske Invest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Danske Invest Danmark has no effect on the direction of AP Mller i.e., AP Mller and Danske Invest go up and down completely randomly.
Pair Corralation between AP Mller and Danske Invest
Assuming the 90 days trading horizon AP Mller is expected to generate 3.01 times more return on investment than Danske Invest. However, AP Mller is 3.01 times more volatile than Danske Invest Danmark. It trades about 0.18 of its potential returns per unit of risk. Danske Invest Danmark is currently generating about -0.05 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 Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
AP Mller vs. Danske Invest Danmark
Performance |
| Timeline |
| AP Mller |
| Danske Invest Danmark |
AP Mller and Danske Invest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AP Mller and Danske Invest
The main advantage of trading using opposite AP Mller and Danske Invest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AP Mller position performs unexpectedly, Danske Invest 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 Danske Invest will offset losses from the drop in Danske Invest'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 |
| Danske Invest vs. Lollands Bank | Danske Invest vs. Skjern Bank AS | Danske Invest vs. Embla Medical hf | Danske Invest vs. Scandinavian Tobacco Group |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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