Correlation Between Maj Invest and DSV Panalpina
Can any of the company-specific risk be diversified away by investing in both Maj Invest 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 Maj Invest and DSV Panalpina into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Maj Invest and DSV Panalpina AS, you can compare the effects of market volatilities on Maj Invest 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 Maj Invest with a short position of DSV Panalpina. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maj Invest and DSV Panalpina.
Diversification Opportunities for Maj Invest and DSV Panalpina
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Maj and DSV is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Maj Invest 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 Maj Invest 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 Maj Invest 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 Maj Invest i.e., Maj Invest and DSV Panalpina go up and down completely randomly.
Pair Corralation between Maj Invest and DSV Panalpina
Assuming the 90 days trading horizon Maj Invest is expected to generate 0.22 times more return on investment than DSV Panalpina. However, Maj Invest is 4.51 times less risky than DSV Panalpina. It trades about -0.02 of its potential returns per unit of risk. DSV Panalpina AS is currently generating about -0.05 per unit of risk. If you would invest 10,400 in Maj Invest on February 8, 2024 and sell it today you would lose (40.00) from holding Maj Invest or give up 0.38% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 97.44% |
Values | Daily Returns |
Maj Invest vs. DSV Panalpina AS
Performance |
Timeline |
Maj Invest |
DSV Panalpina AS |
Maj Invest and DSV Panalpina Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Maj Invest and DSV Panalpina
The main advantage of trading using opposite Maj Invest and DSV Panalpina positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maj Invest 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.Maj Invest vs. Novo Nordisk AS | Maj Invest vs. Nordea Bank Abp | Maj Invest vs. DSV Panalpina AS | Maj Invest vs. AP Mller |
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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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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