Correlation Between Nilfisk Holding and DSV Panalpina
Can any of the company-specific risk be diversified away by investing in both Nilfisk Holding and DSV Panalpina 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 Nilfisk Holding and DSV Panalpina into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nilfisk Holding AS and DSV Panalpina AS, you can compare the effects of market volatilities on Nilfisk Holding and DSV Panalpina 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 Nilfisk Holding with a short position of DSV Panalpina. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nilfisk Holding and DSV Panalpina.
Diversification Opportunities for Nilfisk Holding and DSV Panalpina
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Nilfisk and DSV is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Nilfisk Holding AS and DSV Panalpina AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DSV Panalpina AS and Nilfisk Holding 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 Nilfisk Holding AS are associated (or correlated) with DSV Panalpina. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DSV Panalpina AS has no effect on the direction of Nilfisk Holding i.e., Nilfisk Holding and DSV Panalpina go up and down completely randomly.
Pair Corralation between Nilfisk Holding and DSV Panalpina
Assuming the 90 days trading horizon Nilfisk Holding AS is expected to under-perform the DSV Panalpina. In addition to that, Nilfisk Holding is 1.56 times more volatile than DSV Panalpina AS. It trades about -0.12 of its total potential returns per unit of risk. DSV Panalpina AS is currently generating about -0.09 per unit of volatility. If you would invest 153,650 in DSV Panalpina AS on December 1, 2024 and sell it today you would lose (9,300) from holding DSV Panalpina AS or give up 6.05% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Nilfisk Holding AS vs. DSV Panalpina AS
Performance |
Timeline |
Nilfisk Holding AS |
DSV Panalpina AS |
Nilfisk Holding and DSV Panalpina Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Nilfisk Holding and DSV Panalpina
The main advantage of trading using opposite Nilfisk Holding and DSV Panalpina positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nilfisk Holding position performs unexpectedly, DSV Panalpina 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 DSV Panalpina will offset losses from the drop in DSV Panalpina's long position.Nilfisk Holding vs. NKT AS | Nilfisk Holding vs. ISS AS | Nilfisk Holding vs. Demant AS | Nilfisk Holding vs. Matas AS |
DSV Panalpina vs. Genmab AS | DSV Panalpina vs. Danske Bank AS | DSV Panalpina vs. Ambu AS | DSV Panalpina 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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