Correlation Between Storebrand Indeks and DSV Panalpina
Can any of the company-specific risk be diversified away by investing in both Storebrand Indeks 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 Storebrand Indeks and DSV Panalpina into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Storebrand Indeks and DSV Panalpina AS, you can compare the effects of market volatilities on Storebrand Indeks 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 Storebrand Indeks with a short position of DSV Panalpina. Check out your portfolio center. Please also check ongoing floating volatility patterns of Storebrand Indeks and DSV Panalpina.
Diversification Opportunities for Storebrand Indeks and DSV Panalpina
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Storebrand and DSV is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Storebrand Indeks 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 Storebrand Indeks 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 Storebrand Indeks 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 Storebrand Indeks i.e., Storebrand Indeks and DSV Panalpina go up and down completely randomly.
Pair Corralation between Storebrand Indeks and DSV Panalpina
Assuming the 90 days trading horizon Storebrand Indeks is expected to generate 0.38 times more return on investment than DSV Panalpina. However, Storebrand Indeks is 2.66 times less risky than DSV Panalpina. It trades about 0.14 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 145,900 in Storebrand Indeks on January 19, 2024 and sell it today you would earn a total of 30,200 from holding Storebrand Indeks or generate 20.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Storebrand Indeks vs. DSV Panalpina AS
Performance |
| Timeline |
| Storebrand Indeks |
| DSV Panalpina AS |
Storebrand Indeks and DSV Panalpina Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Storebrand Indeks and DSV Panalpina
The main advantage of trading using opposite Storebrand Indeks and DSV Panalpina positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Storebrand Indeks 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.| Storebrand Indeks vs. Novo Nordisk AS | Storebrand Indeks vs. Nordea Bank Abp | Storebrand Indeks vs. DSV Panalpina AS | Storebrand Indeks vs. AP Mller |
| 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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