Correlation Between AP Mller and Compagnie

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both AP Mller and Compagnie 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 Mller and Compagnie into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AP Mller and Compagnie de Saint Gobain, you can compare the effects of market volatilities on AP Mller and Compagnie 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 Mller with a short position of Compagnie. Check out your portfolio center. Please also check ongoing floating volatility patterns of AP Mller and Compagnie.

Diversification Opportunities for AP Mller and Compagnie

0.82
  Correlation Coefficient

Very poor diversification

The 3 months correlation between AMKBF and Compagnie is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding AP Mller and Compagnie de Saint Gobain in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Compagnie de Saint and AP Mller 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 Mller are associated (or correlated) with Compagnie. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Compagnie de Saint has no effect on the direction of AP Mller i.e., AP Mller and Compagnie go up and down completely randomly.

Pair Corralation between AP Mller and Compagnie

Assuming the 90 days horizon AP Mller is expected to generate 1.8 times more return on investment than Compagnie. However, AP Mller is 1.8 times more volatile than Compagnie de Saint Gobain. It trades about 0.16 of its potential returns per unit of risk. Compagnie de Saint Gobain is currently generating about 0.14 per unit of risk. If you would invest  170,905  in AP Mller on April 28, 2025 and sell it today you would earn a total of  44,095  from holding AP Mller or generate 25.8% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthStrong
Accuracy100.0%
ValuesDaily Returns

AP Mller   vs.  Compagnie de Saint Gobain

 Performance 
       Timeline  
AP Mller 

Risk-Adjusted Performance

OK

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in AP Mller are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak fundamental drivers, AP Mller reported solid returns over the last few months and may actually be approaching a breakup point.
Compagnie de Saint 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Compagnie de Saint Gobain are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile technical and fundamental indicators, Compagnie may actually be approaching a critical reversion point that can send shares even higher in August 2025.

AP Mller and Compagnie Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with AP Mller and Compagnie

The main advantage of trading using opposite AP Mller and Compagnie positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AP Mller position performs unexpectedly, Compagnie 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 Compagnie will offset losses from the drop in Compagnie's long position.
The idea behind AP Mller and Compagnie de Saint Gobain 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.

Other Complementary Tools

Bond Analysis
Evaluate and analyze corporate bonds as a potential investment for your portfolios.
Content Syndication
Quickly integrate customizable finance content to your own investment portal
Money Managers
Screen money managers from public funds and ETFs managed around the world
Headlines Timeline
Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity
Portfolio Holdings
Check your current holdings and cash postion to detemine if your portfolio needs rebalancing