Correlation Between DSV Panalpina and Maj Invest

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

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

Diversification Opportunities for DSV Panalpina and Maj Invest

0.0

Correlation Coefficient

DSV Panalpina  Maj Invest

Pay attention - limited upside

The 3 months correlation between DSV and Maj is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding DSV Panalpina AS and Maj Invest Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maj Invest Value and DSV Panalpina 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 DSV Panalpina AS are associated (or correlated) with Maj Invest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maj Invest Value has no effect on the direction of DSV Panalpina i.e., DSV Panalpina and Maj Invest go up and down completely randomly.

Pair Corralation between DSV Panalpina and Maj Invest

If you would invest  105,105  in DSV Panalpina AS on February 1, 2024 and sell it today you would lose (6,045) from holding DSV Panalpina AS or give up 5.75% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

DSV Panalpina AS  vs.  Maj Invest Value

DSV Panalpina AS

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days DSV Panalpina AS has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in June 2024. The recent disarray may also be a sign of long period up-swing for the firm investors.

Maj Invest Value

Risk-Adjusted Performance

0 of 100

Good

Over the last 90 days Maj Invest Value has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Maj Invest is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with DSV Panalpina and Maj Invest

The main advantage of trading using opposite DSV Panalpina and Maj Invest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DSV Panalpina position performs unexpectedly, Maj Invest 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 Maj Invest will offset losses from the drop in Maj Invest's long position.

The idea behind DSV Panalpina AS and Maj Invest Value pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.