Correlation Between AP Mller and Zealand Pharma
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By analyzing existing cross correlation between AP Mller and Zealand Pharma AS, you can compare the effects of market volatilities on AP Mller and Zealand Pharma 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 Zealand Pharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of AP Mller and Zealand Pharma.
Diversification Opportunities for AP Mller and Zealand Pharma
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MAERSK-B and Zealand is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding AP Mller and Zealand Pharma AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zealand Pharma 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 Zealand Pharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zealand Pharma AS has no effect on the direction of AP Mller i.e., AP Mller and Zealand Pharma go up and down completely randomly.
Pair Corralation between AP Mller and Zealand Pharma
Assuming the 90 days trading horizon AP Mller is expected to under-perform the Zealand Pharma. In addition to that, AP Mller is 1.27 times more volatile than Zealand Pharma AS. It trades about -0.22 of its total potential returns per unit of risk. Zealand Pharma AS is currently generating about -0.16 per unit of volatility. If you would invest 75,650 in Zealand Pharma AS on October 20, 2024 and sell it today you would lose (4,300) from holding Zealand Pharma AS or give up 5.68% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AP Mller vs. Zealand Pharma AS
Performance |
| Timeline |
| AP Mller |
| Zealand Pharma AS |
AP Mller and Zealand Pharma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AP Mller and Zealand Pharma
The main advantage of trading using opposite AP Mller and Zealand Pharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AP Mller position performs unexpectedly, Zealand Pharma 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 Zealand Pharma will offset losses from the drop in Zealand Pharma'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 |
| Zealand Pharma vs. Bavarian Nordic | Zealand Pharma vs. Ambu AS | Zealand Pharma vs. Genmab AS | Zealand Pharma 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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