Correlation Between AP Mller and NKT AS
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By analyzing existing cross correlation between AP Mller and NKT AS, you can compare the effects of market volatilities on AP Mller and NKT 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 NKT AS. Check out your portfolio center. Please also check ongoing floating volatility patterns of AP Mller and NKT AS.
Diversification Opportunities for AP Mller and NKT AS
Very good diversification
The 3 months correlation between MAERSK-B and NKT is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding AP Mller and NKT AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NKT 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 NKT AS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NKT AS has no effect on the direction of AP Mller i.e., AP Mller and NKT AS go up and down completely randomly.
Pair Corralation between AP Mller and NKT AS
Assuming the 90 days trading horizon AP Mller is expected to generate 3.08 times less return on investment than NKT AS. In addition to that, AP Mller is 1.25 times more volatile than NKT AS. It trades about 0.01 of its total potential returns per unit of risk. NKT AS is currently generating about 0.03 per unit of volatility. If you would invest 40,124 in NKT AS on October 25, 2024 and sell it today you would earn a total of 11,076 from holding NKT AS or generate 27.6% 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. NKT AS
Performance |
| Timeline |
| AP Mller |
| NKT AS |
AP Mller and NKT AS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AP Mller and NKT AS
The main advantage of trading using opposite AP Mller and NKT AS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AP Mller position performs unexpectedly, NKT 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 NKT AS will offset losses from the drop in NKT 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 |
| NKT AS vs. FLSmidth Co | NKT AS vs. GN Store Nord | NKT AS vs. DSV Panalpina AS | NKT AS vs. ROCKWOOL International 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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