Correlation Between Global Hemp and AP Moeller
Can any of the company-specific risk be diversified away by investing in both Global Hemp and AP Moeller 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 Global Hemp and AP Moeller into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global Hemp Group and AP Moeller Maersk AS, you can compare the effects of market volatilities on Global Hemp and AP Moeller 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 Global Hemp with a short position of AP Moeller. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Hemp and AP Moeller.
Diversification Opportunities for Global Hemp and AP Moeller
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Global and AMKBY is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Global Hemp Group 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 Global Hemp 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 Global Hemp Group are associated (or correlated) with AP Moeller. 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 Global Hemp i.e., Global Hemp and AP Moeller go up and down completely randomly.
Pair Corralation between Global Hemp and AP Moeller
Assuming the 90 days horizon Global Hemp Group is expected to generate 20.58 times more return on investment than AP Moeller. However, Global Hemp is 20.58 times more volatile than AP Moeller Maersk AS. It trades about 0.16 of its potential returns per unit of risk. AP Moeller Maersk AS is currently generating about 0.02 per unit of risk. If you would invest 1.00 in Global Hemp Group on December 1, 2024 and sell it today you would earn a total of 0.00 from holding Global Hemp Group or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 98.36% |
Values | Daily Returns |
Global Hemp Group vs. AP Moeller Maersk AS
Performance |
Timeline |
Global Hemp Group |
AP Moeller Maersk |
Global Hemp and AP Moeller Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Global Hemp and AP Moeller
The main advantage of trading using opposite Global Hemp and AP Moeller positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Hemp position performs unexpectedly, AP Moeller 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 will offset losses from the drop in AP Moeller's long position.Global Hemp vs. Greater Cannabis | Global Hemp vs. Cannabis Suisse Corp | Global Hemp vs. Maple Leaf Green | Global Hemp vs. Mc Endvrs |
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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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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