Correlation Between DFDS AS and DSV Panalpina

By analyzing existing cross correlation between DFDS AS and DSV Panalpina AS, you can compare the effects of market volatilities on DFDS AS 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 DFDS AS with a short position of DSV Panalpina. Check out your portfolio center. Please also check ongoing floating volatility patterns of DFDS AS and DSV Panalpina.

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Can any of the company-specific risk be diversified away by investing in both DFDS AS 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 DFDS AS and DSV Panalpina into the same portfolio, which is an essential part of the fundamental portfolio management process.

Diversification Opportunities for DFDS AS and DSV Panalpina

0.86
  Correlation Coefficient
DFDS AS
DSV Panalpina AS

Very poor diversification

The 3 months correlation between DFDS AS and DSV Panalpina is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding DFDS 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 DFDS AS 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 DFDS 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 DFDS AS i.e. DFDS AS and DSV Panalpina go up and down completely randomly.

Pair Corralation between DFDS AS and DSV Panalpina

Assuming the 30 trading days horizon, DFDS AS is expected to generate 1.52 times more return on investment than DSV Panalpina. However, DFDS AS is 1.52 times more volatile than DSV Panalpina AS. It trades about 0.18 of its potential returns per unit of risk. DSV Panalpina AS is currently generating about 0.26 per unit of risk. If you would invest  15,440  in DFDS AS on June 5, 2020 and sell it today you would earn a total of  5,740  from holding DFDS AS or generate 37.18% return on investment over 30 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthStrong
Accuracy100.0%
ValuesDaily Returns

DFDS AS  vs.  DSV Panalpina AS

 Performance (%) 
      Timeline 
DFDS AS 
1212

DFDS AS Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in DFDS AS are ranked lower than 12 (%) of all global equities and portfolios over the last 30 days. Allthough quite conflicting forward indicators, DFDS AS disclosed solid returns over the last few months and may actually be approaching a breakup point.
DSV Panalpina AS 
1717

DSV Panalpina Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in DSV Panalpina AS are ranked lower than 17 (%) of all global equities and portfolios over the last 30 days. Allthough quite conflicting forward indicators, DSV Panalpina disclosed solid returns over the last few months and may actually be approaching a breakup point.

DFDS AS and DSV Panalpina Volatility Contrast

 Predicted Return Density 
      Returns 

DFDS AS

Pair trading matchups for DFDS AS

DSV Panalpina AS

Pair trading matchups for DSV Panalpina

Check out your portfolio center. Please also try Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.


 
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