Correlation Between AP Mller and FOM Technologies
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By analyzing existing cross correlation between AP Mller and FOM Technologies AS, you can compare the effects of market volatilities on AP Mller and FOM Technologies 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 FOM Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of AP Mller and FOM Technologies.
Diversification Opportunities for AP Mller and FOM Technologies
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between MAERSK-B and FOM is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding AP Mller and FOM Technologies AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FOM Technologies 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 FOM Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FOM Technologies has no effect on the direction of AP Mller i.e., AP Mller and FOM Technologies go up and down completely randomly.
Pair Corralation between AP Mller and FOM Technologies
Assuming the 90 days trading horizon AP Mller is expected to generate 0.81 times more return on investment than FOM Technologies. However, AP Mller is 1.23 times less risky than FOM Technologies. It trades about 0.18 of its potential returns per unit of risk. FOM Technologies AS is currently generating about -0.3 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 | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AP Mller vs. FOM Technologies AS
Performance |
| Timeline |
| AP Mller |
| FOM Technologies |
AP Mller and FOM Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AP Mller and FOM Technologies
The main advantage of trading using opposite AP Mller and FOM Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AP Mller position performs unexpectedly, FOM Technologies 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 FOM Technologies will offset losses from the drop in FOM Technologies' 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 |
| FOM Technologies vs. cBrain AS | FOM Technologies vs. Penneo AS | FOM Technologies vs. Shape Robotics AS | FOM Technologies vs. ALK Abell 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 Stocks Directory module to find actively traded stocks across global markets.
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