Correlation Between DAX Index and AP Møller
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By analyzing existing cross correlation between DAX Index and AP Mller , you can compare the effects of market volatilities on DAX Index and AP Møller 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 DAX Index with a short position of AP Møller. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and AP Møller.
Diversification Opportunities for DAX Index and AP Møller
Very weak diversification
The 3 months correlation between DAX and DP4B is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and AP Mller in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AP Møller and DAX Index 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 DAX Index are associated (or correlated) with AP Møller. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AP Møller has no effect on the direction of DAX Index i.e., DAX Index and AP Møller go up and down completely randomly.
Pair Corralation between DAX Index and AP Møller
Assuming the 90 days trading horizon DAX Index is expected to generate 1.05 times less return on investment than AP Møller. But when comparing it to its historical volatility, DAX Index is 2.08 times less risky than AP Møller. It trades about 0.17 of its potential returns per unit of risk. AP Mller is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 146,400 in AP Mller on December 29, 2024 and sell it today you would earn a total of 17,750 from holding AP Mller or generate 12.12% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 98.44% |
Values | Daily Returns |
DAX Index vs. AP Mller
Performance |
Timeline |
DAX Index and AP Møller Volatility Contrast
Predicted Return Density |
Returns |
DAX Index
Pair trading matchups for DAX Index
AP Mller
Pair trading matchups for AP Møller
Pair Trading with DAX Index and AP Møller
The main advantage of trading using opposite DAX Index and AP Møller positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, AP Møller 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 Møller will offset losses from the drop in AP Møller's long position.DAX Index vs. SIDETRADE EO 1 | DAX Index vs. National Retail Properties | DAX Index vs. TOMBADOR IRON LTD | DAX Index vs. CALTAGIRONE EDITORE |
AP Møller vs. PREMIER FOODS | AP Møller vs. NAGOYA RAILROAD | AP Møller vs. Liberty Broadband | AP Møller vs. SBM OFFSHORE |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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