Correlation Between AP Moeller and Commodities Strategy
Can any of the company-specific risk be diversified away by investing in both AP Moeller and Commodities Strategy 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 Commodities Strategy 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 Commodities Strategy Fund, you can compare the effects of market volatilities on AP Moeller and Commodities Strategy 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 Commodities Strategy. Check out your portfolio center. Please also check ongoing floating volatility patterns of AP Moeller and Commodities Strategy.
Diversification Opportunities for AP Moeller and Commodities Strategy
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AMKBY and Commodities is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding AP Moeller Maersk AS and Commodities Strategy Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Commodities Strategy 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 Commodities Strategy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Commodities Strategy has no effect on the direction of AP Moeller i.e., AP Moeller and Commodities Strategy go up and down completely randomly.
Pair Corralation between AP Moeller and Commodities Strategy
Assuming the 90 days horizon AP Moeller Maersk AS is expected to generate 2.03 times more return on investment than Commodities Strategy. However, AP Moeller is 2.03 times more volatile than Commodities Strategy Fund. It trades about 0.1 of its potential returns per unit of risk. Commodities Strategy Fund is currently generating about 0.03 per unit of risk. If you would invest 942.00 in AP Moeller Maersk AS on June 8, 2025 and sell it today you would earn a total of 113.00 from holding AP Moeller Maersk AS or generate 12.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AP Moeller Maersk AS vs. Commodities Strategy Fund
Performance |
| Timeline |
| AP Moeller Maersk |
| Commodities Strategy |
Risk-Adjusted Performance
Weak
Weak | Strong |
AP Moeller and Commodities Strategy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AP Moeller and Commodities Strategy
The main advantage of trading using opposite AP Moeller and Commodities Strategy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AP Moeller position performs unexpectedly, Commodities Strategy 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 Commodities Strategy will offset losses from the drop in Commodities Strategy'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 |
| Commodities Strategy vs. Franklin Emerging Market | Commodities Strategy vs. Ep Emerging Markets | Commodities Strategy vs. Ashmore Emerging Markets | Commodities Strategy vs. Pace International Emerging |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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