Correlation Between AP Mller and NTG Nordic
Specify exactly 2 symbols:
By analyzing existing cross correlation between AP Mller and NTG Nordic Transport, you can compare the effects of market volatilities on AP Mller and NTG Nordic 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 NTG Nordic. Check out your portfolio center. Please also check ongoing floating volatility patterns of AP Mller and NTG Nordic.
Diversification Opportunities for AP Mller and NTG Nordic
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MAERSK-B and NTG is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding AP Mller and NTG Nordic Transport in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NTG Nordic Transport 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 NTG Nordic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NTG Nordic Transport has no effect on the direction of AP Mller i.e., AP Mller and NTG Nordic go up and down completely randomly.
Pair Corralation between AP Mller and NTG Nordic
Assuming the 90 days trading horizon AP Mller is expected to generate 2.12 times more return on investment than NTG Nordic. However, AP Mller is 2.12 times more volatile than NTG Nordic Transport. It trades about -0.08 of its potential returns per unit of risk. NTG Nordic Transport is currently generating about -0.52 per unit of risk. If you would invest 1,205,500 in AP Mller on September 18, 2024 and sell it today you would lose (51,500) from holding AP Mller or give up 4.27% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AP Mller vs. NTG Nordic Transport
Performance |
| Timeline |
| AP Mller |
| NTG Nordic Transport |
AP Mller and NTG Nordic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AP Mller and NTG Nordic
The main advantage of trading using opposite AP Mller and NTG Nordic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AP Mller position performs unexpectedly, NTG Nordic 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 NTG Nordic will offset losses from the drop in NTG Nordic'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 |
| NTG Nordic vs. Genmab AS | NTG Nordic vs. Danske Bank AS | NTG Nordic vs. Ambu AS | NTG Nordic vs. Bavarian Nordic |
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
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |