Correlation Between AP Moeller and China Merchants
Can any of the company-specific risk be diversified away by investing in both AP Moeller and China Merchants 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 AP Moeller and China Merchants into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AP Moeller and China Merchants Port, you can compare the effects of market volatilities on AP Moeller and China Merchants 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 AP Moeller with a short position of China Merchants. Check out your portfolio center. Please also check ongoing floating volatility patterns of AP Moeller and China Merchants.
Diversification Opportunities for AP Moeller and China Merchants
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between AMKAF and China is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding AP Moeller and China Merchants Port in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Merchants Port and AP Moeller 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 AP Moeller are associated (or correlated) with China Merchants. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Merchants Port has no effect on the direction of AP Moeller i.e., AP Moeller and China Merchants go up and down completely randomly.
Pair Corralation between AP Moeller and China Merchants
If you would invest 127,000 in AP Moeller on January 20, 2024 and sell it today you would earn a total of 6,778 from holding AP Moeller or generate 5.34% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 95.45% |
Values | Daily Returns |
AP Moeller vs. China Merchants Port
Performance |
Timeline |
AP Moeller |
China Merchants Port |
AP Moeller and China Merchants Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with AP Moeller and China Merchants
The main advantage of trading using opposite AP Moeller and China Merchants positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AP Moeller position performs unexpectedly, China Merchants 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 China Merchants will offset losses from the drop in China Merchants' long position.AP Moeller vs. Orient Overseas Limited | AP Moeller vs. Hafnia Limited | AP Moeller vs. Golden Ocean Group |
China Merchants vs. Orient Overseas Limited | China Merchants vs. Hafnia Limited | China Merchants vs. Golden Ocean Group |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
CEOs Directory Screen CEOs from public companies around the world | |
Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |