Correlation Between AP Mller and Strategic Investments
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By analyzing existing cross correlation between AP Mller and Strategic Investments AS, you can compare the effects of market volatilities on AP Mller and Strategic Investments 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 Strategic Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of AP Mller and Strategic Investments.
Diversification Opportunities for AP Mller and Strategic Investments
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MAERSK-B and Strategic is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding AP Mller and Strategic Investments AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Strategic Investments 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 Strategic Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Strategic Investments has no effect on the direction of AP Mller i.e., AP Mller and Strategic Investments go up and down completely randomly.
Pair Corralation between AP Mller and Strategic Investments
Assuming the 90 days trading horizon AP Mller is expected to generate 1.16 times more return on investment than Strategic Investments. However, AP Mller is 1.16 times more volatile than Strategic Investments AS. It trades about 0.18 of its potential returns per unit of risk. Strategic Investments AS is currently generating about -0.21 per unit of risk. If you would invest 1,032,000 in AP Mller on August 30, 2024 and sell it today you would earn a total of 140,500 from holding AP Mller or generate 13.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AP Mller vs. Strategic Investments AS
Performance |
| Timeline |
| AP Mller |
| Strategic Investments |
AP Mller and Strategic Investments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AP Mller and Strategic Investments
The main advantage of trading using opposite AP Mller and Strategic Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AP Mller position performs unexpectedly, Strategic Investments 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 Strategic Investments will offset losses from the drop in Strategic Investments' 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 |
| Strategic Investments vs. SKAKO AS | Strategic Investments vs. Rovsing AS | Strategic Investments vs. Bavarian Nordic | Strategic Investments vs. Gyldendal 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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