Correlation Between Agat Ejendomme and DSV Panalpina
Can any of the company-specific risk be diversified away by investing in both Agat Ejendomme 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 Agat Ejendomme and DSV Panalpina into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Agat Ejendomme AS and DSV Panalpina AS, you can compare the effects of market volatilities on Agat Ejendomme 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 Agat Ejendomme with a short position of DSV Panalpina. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agat Ejendomme and DSV Panalpina.
Diversification Opportunities for Agat Ejendomme and DSV Panalpina
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Agat and DSV is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Agat Ejendomme 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 Agat Ejendomme 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 Agat Ejendomme 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 Agat Ejendomme i.e., Agat Ejendomme and DSV Panalpina go up and down completely randomly.
Pair Corralation between Agat Ejendomme and DSV Panalpina
Assuming the 90 days trading horizon Agat Ejendomme AS is expected to generate 1.11 times more return on investment than DSV Panalpina. However, Agat Ejendomme is 1.11 times more volatile than DSV Panalpina AS. It trades about -0.04 of its potential returns per unit of risk. DSV Panalpina AS is currently generating about -0.27 per unit of risk. If you would invest 168.00 in Agat Ejendomme AS on January 25, 2024 and sell it today you would lose (3.00) from holding Agat Ejendomme AS or give up 1.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Agat Ejendomme AS vs. DSV Panalpina AS
Performance |
| Timeline |
| Agat Ejendomme AS |
| DSV Panalpina AS |
Agat Ejendomme and DSV Panalpina Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agat Ejendomme and DSV Panalpina
The main advantage of trading using opposite Agat Ejendomme and DSV Panalpina positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agat Ejendomme 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.| Agat Ejendomme vs. Cemat AS | Agat Ejendomme vs. Columbus AS | Agat Ejendomme vs. Harboes Bryggeri AS | Agat Ejendomme vs. Copenhagen Capital AS |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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