Correlation Between FedEx and AP Moeller

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

By analyzing existing cross correlation between FedEx and AP Moeller , you can compare the effects of market volatilities on FedEx and AP Moeller 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 FedEx with a short position of AP Moeller. Check out your portfolio center. Please also check ongoing floating volatility patterns of FedEx and AP Moeller.

Diversification Opportunities for FedEx and AP Moeller

0.4

Correlation Coefficient

FedEx  AP Moeller

Very weak diversification

The 3 months correlation between FedEx and AMKAF is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding FedEx and AP Moeller in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AP Moeller and FedEx 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 FedEx are associated (or correlated) with AP Moeller. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AP Moeller has no effect on the direction of FedEx i.e., FedEx and AP Moeller go up and down completely randomly.

Pair Corralation between FedEx and AP Moeller

Considering the 90-day investment horizon FedEx is expected to generate 2.06 times less return on investment than AP Moeller. But when comparing it to its historical volatility, FedEx is 2.07 times less risky than AP Moeller. It trades about 0.07 of its potential returns per unit of risk. AP Moeller is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  185,516  in AP Moeller on May 28, 2025 and sell it today you would earn a total of  22,775  from holding AP Moeller or generate 12.28% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	98.41%
Values	Daily Returns

FedEx  vs.  AP Moeller

FedEx

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in FedEx are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating fundamental indicators, FedEx may actually be approaching a critical reversion point that can send shares even higher in September 2025.

AP Moeller

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in AP Moeller are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, AP Moeller reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with FedEx and AP Moeller

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

The idea behind FedEx and AP Moeller 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.