Correlation Between Beeks TradingLtd and AP Moeller-Maersk

Can any of the company-specific risk be diversified away by investing in both Beeks TradingLtd and AP Moeller-Maersk at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Beeks TradingLtd and AP Moeller-Maersk into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Beeks Trading and AP Moeller Maersk AS, you can compare the effects of market volatilities on Beeks TradingLtd and AP Moeller-Maersk 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 Beeks TradingLtd with a short position of AP Moeller-Maersk. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beeks TradingLtd and AP Moeller-Maersk.

Diversification Opportunities for Beeks TradingLtd and AP Moeller-Maersk

-0.02

Correlation Coefficient

Beeks TradingLtd  AP Moeller-Maersk

Good diversification

The 3 months correlation between Beeks and 0O76 is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Beeks Trading and AP Moeller Maersk AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AP Moeller Maersk and Beeks TradingLtd 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 Beeks Trading are associated (or correlated) with AP Moeller-Maersk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AP Moeller Maersk has no effect on the direction of Beeks TradingLtd i.e., Beeks TradingLtd and AP Moeller-Maersk go up and down completely randomly.

Pair Corralation between Beeks TradingLtd and AP Moeller-Maersk

Assuming the 90 days trading horizon Beeks Trading is expected to under-perform the AP Moeller-Maersk. In addition to that, Beeks TradingLtd is 1.82 times more volatile than AP Moeller Maersk AS. It trades about -0.09 of its total potential returns per unit of risk. AP Moeller Maersk AS is currently generating about 0.07 per unit of volatility. If you would invest  1,037,109  in AP Moeller Maersk AS on December 21, 2024 and sell it today you would earn a total of  92,891  from holding AP Moeller Maersk AS or generate 8.96% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.39%
Values	Daily Returns

Beeks Trading  vs.  AP Moeller Maersk AS

Beeks TradingLtd

Risk-Adjusted Performance

Very Weak

Over the last 90 days Beeks Trading has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's technical and fundamental indicators remain rather sound which may send shares a bit higher in April 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

AP Moeller Maersk

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in AP Moeller Maersk AS are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, AP Moeller-Maersk may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Beeks TradingLtd and AP Moeller-Maersk

The main advantage of trading using opposite Beeks TradingLtd and AP Moeller-Maersk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beeks TradingLtd position performs unexpectedly, AP Moeller-Maersk 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 Moeller-Maersk will offset losses from the drop in AP Moeller-Maersk's long position.

The idea behind Beeks Trading and AP Moeller Maersk AS pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.