Correlation Between AP Moeller and Castle Biosciences
Can any of the company-specific risk be diversified away by investing in both AP Moeller and Castle Biosciences 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 Castle Biosciences 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 Castle Biosciences, you can compare the effects of market volatilities on AP Moeller and Castle Biosciences 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 Castle Biosciences. Check out your portfolio center. Please also check ongoing floating volatility patterns of AP Moeller and Castle Biosciences.
Diversification Opportunities for AP Moeller and Castle Biosciences
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AMKBY and Castle is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding AP Moeller Maersk AS and Castle Biosciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Castle Biosciences 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 Castle Biosciences. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Castle Biosciences has no effect on the direction of AP Moeller i.e., AP Moeller and Castle Biosciences go up and down completely randomly.
Pair Corralation between AP Moeller and Castle Biosciences
Assuming the 90 days horizon AP Moeller Maersk AS is expected to generate 0.87 times more return on investment than Castle Biosciences. However, AP Moeller Maersk AS is 1.15 times less risky than Castle Biosciences. It trades about 0.16 of its potential returns per unit of risk. Castle Biosciences is currently generating about -0.14 per unit of risk. If you would invest 824.00 in AP Moeller Maersk AS on April 24, 2025 and sell it today you would earn a total of 198.00 from holding AP Moeller Maersk AS or generate 24.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AP Moeller Maersk AS vs. Castle Biosciences
Performance |
| Timeline |
| AP Moeller Maersk |
| Castle Biosciences |
AP Moeller and Castle Biosciences Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AP Moeller and Castle Biosciences
The main advantage of trading using opposite AP Moeller and Castle Biosciences positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AP Moeller position performs unexpectedly, Castle Biosciences 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 Castle Biosciences will offset losses from the drop in Castle Biosciences' 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 |
| Castle Biosciences vs. Personalis | Castle Biosciences vs. Sera Prognostics | Castle Biosciences vs. CareDx Inc | Castle Biosciences vs. DarioHealth Corp |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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