Correlation Between GOLDGROUP MINING and AP Møller

Can any of the company-specific risk be diversified away by investing in both GOLDGROUP MINING and AP Møller 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 GOLDGROUP MINING and AP Møller into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between GOLDGROUP MINING INC and AP Mller , you can compare the effects of market volatilities on GOLDGROUP MINING and AP Møller 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 GOLDGROUP MINING with a short position of AP Møller. Check out your portfolio center. Please also check ongoing floating volatility patterns of GOLDGROUP MINING and AP Møller.

Diversification Opportunities for GOLDGROUP MINING and AP Møller

0.25

Correlation Coefficient

GOLDGROUP MINING  AP Møller

Modest diversification

The 3 months correlation between GOLDGROUP and DP4B is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding GOLDGROUP MINING INC and AP Mller in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AP Møller and GOLDGROUP MINING 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 GOLDGROUP MINING INC are associated (or correlated) with AP Møller. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AP Møller has no effect on the direction of GOLDGROUP MINING i.e., GOLDGROUP MINING and AP Møller go up and down completely randomly.

Pair Corralation between GOLDGROUP MINING and AP Møller

Assuming the 90 days trading horizon GOLDGROUP MINING is expected to generate 1.87 times less return on investment than AP Møller. In addition to that, GOLDGROUP MINING is 1.54 times more volatile than AP Mller . It trades about 0.05 of its total potential returns per unit of risk. AP Mller is currently generating about 0.14 per unit of volatility. If you would invest  147,200  in AP Mller on April 25, 2025 and sell it today you would earn a total of  33,800  from holding AP Mller or generate 22.96% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.44%
Values	Daily Returns

GOLDGROUP MINING INC  vs.  AP Mller

GOLDGROUP MINING INC

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in GOLDGROUP MINING INC are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain technical and fundamental indicators, GOLDGROUP MINING may actually be approaching a critical reversion point that can send shares even higher in August 2025.

AP Møller

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in AP Mller are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite nearly unsteady basic indicators, AP Møller reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with GOLDGROUP MINING and AP Møller

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

The idea behind GOLDGROUP MINING INC and AP Mller 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.