Correlation Between AP Moeller and Calvert Developed
Can any of the company-specific risk be diversified away by investing in both AP Moeller and Calvert Developed 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 AP Moeller and Calvert Developed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AP Moeller Maersk AS and Calvert Developed Market, you can compare the effects of market volatilities on AP Moeller and Calvert Developed 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 AP Moeller with a short position of Calvert Developed. Check out your portfolio center. Please also check ongoing floating volatility patterns of AP Moeller and Calvert Developed.
Diversification Opportunities for AP Moeller and Calvert Developed
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between AMKBY and Calvert is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding AP Moeller Maersk AS and Calvert Developed Market in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert Developed Market and AP Moeller 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 AP Moeller Maersk AS are associated (or correlated) with Calvert Developed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calvert Developed Market has no effect on the direction of AP Moeller i.e., AP Moeller and Calvert Developed go up and down completely randomly.
Pair Corralation between AP Moeller and Calvert Developed
Assuming the 90 days horizon AP Moeller Maersk AS is expected to generate 3.42 times more return on investment than Calvert Developed. However, AP Moeller is 3.42 times more volatile than Calvert Developed Market. It trades about 0.14 of its potential returns per unit of risk. Calvert Developed Market is currently generating about 0.27 per unit of risk. If you would invest 839.00 in AP Moeller Maersk AS on April 23, 2025 and sell it today you would earn a total of 170.00 from holding AP Moeller Maersk AS or generate 20.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
AP Moeller Maersk AS vs. Calvert Developed Market
Performance |
| Timeline |
| AP Moeller Maersk |
| Calvert Developed Market |
AP Moeller and Calvert Developed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AP Moeller and Calvert Developed
The main advantage of trading using opposite AP Moeller and Calvert Developed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AP Moeller position performs unexpectedly, Calvert Developed 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 Calvert Developed will offset losses from the drop in Calvert Developed's long position.| AP Moeller vs. Hapag Lloyd Aktiengesellschaft | AP Moeller vs. COSCO SHIPPING Holdings | AP Moeller vs. Nippon Yusen Kabushiki | AP Moeller vs. AP Mller |
| Calvert Developed vs. Calvert Large Cap | Calvert Developed vs. Calvert Large Cap | Calvert Developed vs. Calvert Mid Cap | Calvert Developed vs. Calvert Short Duration |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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