Correlation Between AP Mller and DKIJAP
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By analyzing existing cross correlation between AP Mller and Investeringsforeningen Danske Invest, you can compare the effects of market volatilities on AP Mller and DKIJAP 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 DKIJAP. Check out your portfolio center. Please also check ongoing floating volatility patterns of AP Mller and DKIJAP.
Diversification Opportunities for AP Mller and DKIJAP
Very good diversification
The 3 months correlation between MAERSK-B and DKIJAP is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding AP Mller and Investeringsforeningen Danske in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Investeringsforeningen 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 DKIJAP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Investeringsforeningen has no effect on the direction of AP Mller i.e., AP Mller and DKIJAP go up and down completely randomly.
Pair Corralation between AP Mller and DKIJAP
Assuming the 90 days trading horizon AP Mller is expected to generate 2.06 times more return on investment than DKIJAP. However, AP Mller is 2.06 times more volatile than Investeringsforeningen Danske Invest. It trades about 0.01 of its potential returns per unit of risk. Investeringsforeningen Danske Invest is currently generating about -0.01 per unit of risk. If you would invest 1,177,029 in AP Mller on August 29, 2024 and sell it today you would lose (32,029) from holding AP Mller or give up 2.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AP Mller vs. Investeringsforeningen Danske
Performance |
| Timeline |
| AP Mller |
| Investeringsforeningen |
AP Mller and DKIJAP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AP Mller and DKIJAP
The main advantage of trading using opposite AP Mller and DKIJAP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AP Mller position performs unexpectedly, DKIJAP 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 DKIJAP will offset losses from the drop in DKIJAP's long position.The idea behind AP Mller and Investeringsforeningen Danske Invest pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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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