Correlation Between Carlsberg and DSV Panalpina
Can any of the company-specific risk be diversified away by investing in both Carlsberg 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 Carlsberg and DSV Panalpina into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Carlsberg AS and DSV Panalpina AS, you can compare the effects of market volatilities on Carlsberg 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 Carlsberg with a short position of DSV Panalpina. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carlsberg and DSV Panalpina.
Diversification Opportunities for Carlsberg and DSV Panalpina
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Carlsberg and DSV is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Carlsberg 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 Carlsberg 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 Carlsberg 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 Carlsberg i.e., Carlsberg and DSV Panalpina go up and down completely randomly.
Pair Corralation between Carlsberg and DSV Panalpina
Assuming the 90 days trading horizon Carlsberg AS is expected to generate 1.16 times more return on investment than DSV Panalpina. However, Carlsberg is 1.16 times more volatile than DSV Panalpina AS. It trades about 0.01 of its potential returns per unit of risk. DSV Panalpina AS is currently generating about 0.0 per unit of risk. If you would invest 110,381 in Carlsberg AS on January 20, 2024 and sell it today you would earn a total of 2,119 from holding Carlsberg AS or generate 1.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Carlsberg AS vs. DSV Panalpina AS
Performance |
| Timeline |
| Carlsberg AS |
| DSV Panalpina AS |
Carlsberg and DSV Panalpina Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carlsberg and DSV Panalpina
The main advantage of trading using opposite Carlsberg and DSV Panalpina positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carlsberg 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.| Carlsberg vs. AP Mller | Carlsberg vs. ROCKWOOL International AS | Carlsberg vs. Royal Unibrew AS | Carlsberg vs. Tryg AS |
| DSV Panalpina vs. Copenhagen Capital AS | DSV Panalpina vs. Fast Ejendom | DSV Panalpina vs. Prime Office AS | DSV Panalpina vs. Formuepleje Limittellus |
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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