Correlation Between AP Mller and First Farms
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By analyzing existing cross correlation between AP Mller and First Farms AS, you can compare the effects of market volatilities on AP Mller and First Farms 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 First Farms. Check out your portfolio center. Please also check ongoing floating volatility patterns of AP Mller and First Farms.
Diversification Opportunities for AP Mller and First Farms
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MAERSK-B and First is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding AP Mller and First Farms AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Farms 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 First Farms. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Farms AS has no effect on the direction of AP Mller i.e., AP Mller and First Farms go up and down completely randomly.
Pair Corralation between AP Mller and First Farms
Assuming the 90 days trading horizon AP Mller is expected to generate 1.91 times more return on investment than First Farms. However, AP Mller is 1.91 times more volatile than First Farms AS. It trades about 0.14 of its potential returns per unit of risk. First Farms AS is currently generating about -0.05 per unit of risk. If you would invest 1,041,000 in AP Mller on August 29, 2024 and sell it today you would earn a total of 104,000 from holding AP Mller or generate 9.99% 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. First Farms AS
Performance |
| Timeline |
| AP Mller |
| First Farms AS |
AP Mller and First Farms Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AP Mller and First Farms
The main advantage of trading using opposite AP Mller and First Farms positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AP Mller position performs unexpectedly, First Farms 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 First Farms will offset losses from the drop in First Farms' 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 |
| First Farms vs. HH International AS | First Farms vs. SKAKO AS | First Farms vs. Spar Nord Bank | First Farms vs. Matas 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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