Correlation Between ROCKWOOL International and AP Mller
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By analyzing existing cross correlation between ROCKWOOL International AS and AP Mller , you can compare the effects of market volatilities on ROCKWOOL International and AP Mller 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 ROCKWOOL International with a short position of AP Mller. Check out your portfolio center. Please also check ongoing floating volatility patterns of ROCKWOOL International and AP Mller.
Diversification Opportunities for ROCKWOOL International and AP Mller
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between ROCKWOOL and MAERSK-A is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding ROCKWOOL International AS and AP Mller in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AP Mller and ROCKWOOL International 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 ROCKWOOL International AS are associated (or correlated) with AP Mller. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AP Mller has no effect on the direction of ROCKWOOL International i.e., ROCKWOOL International and AP Mller go up and down completely randomly.
Pair Corralation between ROCKWOOL International and AP Mller
Assuming the 90 days trading horizon ROCKWOOL International AS is expected to under-perform the AP Mller. But the stock apears to be less risky and, when comparing its historical volatility, ROCKWOOL International AS is 1.25 times less risky than AP Mller. The stock trades about -0.02 of its potential returns per unit of risk. The AP Mller is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 1,178,000 in AP Mller on September 3, 2024 and sell it today you would lose (21,000) from holding AP Mller or give up 1.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ROCKWOOL International AS vs. AP Mller
Performance |
| Timeline |
| ROCKWOOL International |
| AP Mller |
ROCKWOOL International and AP Mller Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ROCKWOOL International and AP Mller
The main advantage of trading using opposite ROCKWOOL International and AP Mller positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ROCKWOOL International position performs unexpectedly, AP Mller 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 AP Mller will offset losses from the drop in AP Mller's long position.| ROCKWOOL International vs. ROCKWOOL International AS | ROCKWOOL International vs. FLSmidth Co | ROCKWOOL International vs. Royal Unibrew AS | ROCKWOOL International vs. Tryg AS |
| AP Mller vs. AP Mller | AP Mller vs. DSV Panalpina AS | AP Mller vs. Danske Bank AS | AP Mller vs. FLSmidth Co |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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