Correlation Between SKAGEN Global and DSV Panalpina
Can any of the company-specific risk be diversified away by investing in both SKAGEN Global 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 SKAGEN Global and DSV Panalpina into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SKAGEN Global A and DSV Panalpina AS, you can compare the effects of market volatilities on SKAGEN Global 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 SKAGEN Global with a short position of DSV Panalpina. Check out your portfolio center. Please also check ongoing floating volatility patterns of SKAGEN Global and DSV Panalpina.
Diversification Opportunities for SKAGEN Global and DSV Panalpina
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SKAGEN and DSV is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding SKAGEN Global A 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 SKAGEN Global 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 SKAGEN Global A 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 SKAGEN Global i.e., SKAGEN Global and DSV Panalpina go up and down completely randomly.
Pair Corralation between SKAGEN Global and DSV Panalpina
Assuming the 90 days trading horizon SKAGEN Global A is expected to generate 1.43 times more return on investment than DSV Panalpina. However, SKAGEN Global is 1.43 times more volatile than DSV Panalpina AS. It trades about 0.0 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 273,461 in SKAGEN Global A on January 24, 2024 and sell it today you would lose (40,461) from holding SKAGEN Global A or give up 14.8% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
SKAGEN Global A vs. DSV Panalpina AS
Performance |
Timeline |
SKAGEN Global A |
DSV Panalpina AS |
SKAGEN Global and DSV Panalpina Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with SKAGEN Global and DSV Panalpina
The main advantage of trading using opposite SKAGEN Global and DSV Panalpina positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SKAGEN Global 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.SKAGEN Global vs. Novo Nordisk AS | SKAGEN Global vs. Nordea Bank Abp | SKAGEN Global vs. DSV Panalpina AS | SKAGEN Global 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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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