Correlation Between AP Mller and Erria AS
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By analyzing existing cross correlation between AP Mller and Erria AS, you can compare the effects of market volatilities on AP Mller and Erria 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 Erria AS. Check out your portfolio center. Please also check ongoing floating volatility patterns of AP Mller and Erria AS.
Diversification Opportunities for AP Mller and Erria AS
Very good diversification
The 3 months correlation between MAERSK-B and Erria is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding AP Mller and Erria AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Erria 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 Erria AS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Erria AS has no effect on the direction of AP Mller i.e., AP Mller and Erria AS go up and down completely randomly.
Pair Corralation between AP Mller and Erria AS
Assuming the 90 days trading horizon AP Mller is expected to generate 0.79 times more return on investment than Erria AS. However, AP Mller is 1.27 times less risky than Erria AS. It trades about 0.19 of its potential returns per unit of risk. Erria AS is currently generating about -0.06 per unit of risk. If you would invest 1,098,500 in AP Mller on September 12, 2024 and sell it today you would earn a total of 108,500 from holding AP Mller or generate 9.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AP Mller vs. Erria AS
Performance |
| Timeline |
| AP Mller |
| Erria AS |
AP Mller and Erria AS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AP Mller and Erria AS
The main advantage of trading using opposite AP Mller and Erria AS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AP Mller position performs unexpectedly, Erria 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 Erria AS will offset losses from the drop in Erria 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 |
| Erria AS vs. PARKEN Sport Entertainment | Erria AS vs. Hvidbjerg Bank | Erria AS vs. Nordinvestments AS | Erria AS vs. North Media 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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