Correlation Between Wilh Wilhelmsen and American Shipping

Can any of the company-specific risk be diversified away by investing in both Wilh Wilhelmsen and American Shipping 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 American Shipping 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 American Shipping, you can compare the effects of market volatilities on Wilh Wilhelmsen and American Shipping 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 American Shipping. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wilh Wilhelmsen and American Shipping.

Diversification Opportunities for Wilh Wilhelmsen and American Shipping

-0.78

Correlation Coefficient

Wilh Wilhelmsen  American Shipping

Pay attention - limited upside

The 3 months correlation between Wilh and American is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Wilh Wilhelmsen Holding and American Shipping in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Shipping 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 American Shipping. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Shipping has no effect on the direction of Wilh Wilhelmsen i.e., Wilh Wilhelmsen and American Shipping go up and down completely randomly.

Pair Corralation between Wilh Wilhelmsen and American Shipping

Assuming the 90 days trading horizon Wilh Wilhelmsen Holding is expected to generate 0.12 times more return on investment than American Shipping. However, Wilh Wilhelmsen Holding is 8.56 times less risky than American Shipping. It trades about 0.32 of its potential returns per unit of risk. American Shipping is currently generating about -0.12 per unit of risk. If you would invest  35,832  in Wilh Wilhelmsen Holding on April 24, 2025 and sell it today you would earn a total of  11,068  from holding Wilh Wilhelmsen Holding or generate 30.89% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	98.39%
Values	Daily Returns

Wilh Wilhelmsen Holding  vs.  American Shipping

Wilh Wilhelmsen Holding

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Wilh Wilhelmsen Holding are ranked lower than 25 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting forward indicators, Wilh Wilhelmsen disclosed solid returns over the last few months and may actually be approaching a breakup point.

American Shipping

Risk-Adjusted Performance

Very Weak

Over the last 90 days American Shipping has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's essential indicators remain quite persistent which may send shares a bit higher in August 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with Wilh Wilhelmsen and American Shipping

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

The idea behind Wilh Wilhelmsen Holding and American Shipping 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.

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..