Correlation Between AP Mller and Partners

Can any of the company-specific risk be diversified away by investing in both AP Mller and Partners 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 Partners into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between AP Mller and Partners Group, you can compare the effects of market volatilities on AP Mller and Partners 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 Partners. Check out your portfolio center. Please also check ongoing floating volatility patterns of AP Mller and Partners.

Diversification Opportunities for AP Mller and Partners

0.58

Correlation Coefficient

AP Mller  Partners

Very weak diversification

The 3 months correlation between AMKBF and Partners is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding AP Mller and Partners Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Partners Group 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 Partners. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Partners Group has no effect on the direction of AP Mller i.e., AP Mller and Partners go up and down completely randomly.

Pair Corralation between AP Mller and Partners

Assuming the 90 days horizon AP Mller is expected to generate 1.17 times more return on investment than Partners. However, AP Mller is 1.17 times more volatile than Partners Group. It trades about 0.17 of its potential returns per unit of risk. Partners Group is currently generating about 0.11 per unit of risk. If you would invest  155,696  in AP Mller on April 22, 2025 and sell it today you would earn a total of  46,154  from holding AP Mller or generate 29.64% return on investment over 90 days.

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

AP Mller   vs.  Partners Group

AP Mller

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in AP Mller are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile fundamental drivers, AP Mller reported solid returns over the last few months and may actually be approaching a breakup point.

Partners Group

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Partners Group are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile technical indicators, Partners reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with AP Mller and Partners

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

The idea behind AP Mller and Partners Group 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.

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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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.