Correlation Between AP Mller and Nordea Invest
Specify exactly 2 symbols:
By analyzing existing cross correlation between AP Mller and Nordea Invest Basis, you can compare the effects of market volatilities on AP Mller and Nordea 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 Nordea Invest. Check out your portfolio center. Please also check ongoing floating volatility patterns of AP Mller and Nordea Invest.
Diversification Opportunities for AP Mller and Nordea Invest
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between MAERSK-B and Nordea is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding AP Mller and Nordea Invest Basis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nordea Invest Basis 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 Nordea Invest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nordea Invest Basis has no effect on the direction of AP Mller i.e., AP Mller and Nordea Invest go up and down completely randomly.
Pair Corralation between AP Mller and Nordea Invest
Assuming the 90 days trading horizon AP Mller is expected to generate 5.11 times more return on investment than Nordea Invest. However, AP Mller is 5.11 times more volatile than Nordea Invest Basis. It trades about 0.02 of its potential returns per unit of risk. Nordea Invest Basis is currently generating about 0.06 per unit of risk. If you would invest 1,006,533 in AP Mller on September 19, 2024 and sell it today you would earn a total of 147,467 from holding AP Mller or generate 14.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AP Mller vs. Nordea Invest Basis
Performance |
| Timeline |
| AP Mller |
| Nordea Invest Basis |
AP Mller and Nordea Invest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AP Mller and Nordea Invest
The main advantage of trading using opposite AP Mller and Nordea Invest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AP Mller position performs unexpectedly, Nordea 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 Nordea Invest will offset losses from the drop in Nordea Invest's long position.| AP Mller vs. Dampskibsselskabet Norden AS | AP Mller vs. FLSmidth Co | AP Mller vs. Zealand Pharma AS | AP Mller vs. NKT AS |
| Nordea Invest vs. Lollands Bank | Nordea Invest vs. Hvidbjerg Bank | Nordea Invest vs. PARKEN Sport Entertainment | Nordea Invest vs. Sydbank 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |