Correlation Between Wilh Wilhelmsen and AP Møller
Can any of the company-specific risk be diversified away by investing in both Wilh Wilhelmsen 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 Wilh Wilhelmsen and AP Møller into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wilh Wilhelmsen Holding and AP Mller , you can compare the effects of market volatilities on Wilh Wilhelmsen 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 Wilh Wilhelmsen with a short position of AP Møller. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wilh Wilhelmsen and AP Møller.
Diversification Opportunities for Wilh Wilhelmsen and AP Møller
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Wilh and DP4B is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Wilh Wilhelmsen Holding and AP Mller in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AP Møller and Wilh Wilhelmsen 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 Wilh Wilhelmsen Holding 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 Wilh Wilhelmsen i.e., Wilh Wilhelmsen and AP Møller go up and down completely randomly.
Pair Corralation between Wilh Wilhelmsen and AP Møller
Assuming the 90 days trading horizon Wilh Wilhelmsen Holding is expected to generate 3.56 times more return on investment than AP Møller. However, Wilh Wilhelmsen is 3.56 times more volatile than AP Mller . It trades about 0.08 of its potential returns per unit of risk. AP Mller is currently generating about 0.12 per unit of risk. If you would invest 2,891 in Wilh Wilhelmsen Holding on April 23, 2025 and sell it today you would earn a total of 759.00 from holding Wilh Wilhelmsen Holding or generate 26.25% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Wilh Wilhelmsen Holding vs. AP Mller
Performance |
Timeline |
Wilh Wilhelmsen Holding |
AP Møller |
Wilh Wilhelmsen and AP Møller Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Wilh Wilhelmsen and AP Møller
The main advantage of trading using opposite Wilh Wilhelmsen and AP Møller positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wilh Wilhelmsen 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.Wilh Wilhelmsen vs. AP Mller | Wilh Wilhelmsen vs. AP Mller | Wilh Wilhelmsen vs. HAPAG LLOYD UNSPADR 12 | Wilh Wilhelmsen vs. ZIM Integrated Shipping |
AP Møller vs. Harmony Gold Mining | AP Møller vs. GOLDGROUP MINING INC | AP Møller vs. GOLDQUEST MINING | AP Møller vs. DENTSPLY SIRONA |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
Bonds Directory Find actively traded corporate debentures issued by US companies | |
Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |