Correlation Between Carlsberg and Per Aarsleff
Can any of the company-specific risk be diversified away by investing in both Carlsberg and Per Aarsleff 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 Carlsberg and Per Aarsleff into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Carlsberg AS and Per Aarsleff Holding, you can compare the effects of market volatilities on Carlsberg and Per Aarsleff 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 Carlsberg with a short position of Per Aarsleff. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carlsberg and Per Aarsleff.
Diversification Opportunities for Carlsberg and Per Aarsleff
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Carlsberg and Per is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Carlsberg AS and Per Aarsleff Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Per Aarsleff Holding and Carlsberg 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 Carlsberg AS are associated (or correlated) with Per Aarsleff. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Per Aarsleff Holding has no effect on the direction of Carlsberg i.e., Carlsberg and Per Aarsleff go up and down completely randomly.
Pair Corralation between Carlsberg and Per Aarsleff
Assuming the 90 days trading horizon Carlsberg AS is expected to under-perform the Per Aarsleff. In addition to that, Carlsberg is 1.33 times more volatile than Per Aarsleff Holding. It trades about -0.02 of its total potential returns per unit of risk. Per Aarsleff Holding is currently generating about 0.08 per unit of volatility. If you would invest 27,860 in Per Aarsleff Holding on November 5, 2024 and sell it today you would earn a total of 18,490 from holding Per Aarsleff Holding or generate 66.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Carlsberg AS vs. Per Aarsleff Holding
Performance |
| Timeline |
| Carlsberg AS |
| Per Aarsleff Holding |
Carlsberg and Per Aarsleff Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carlsberg and Per Aarsleff
The main advantage of trading using opposite Carlsberg and Per Aarsleff positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carlsberg position performs unexpectedly, Per Aarsleff 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 Per Aarsleff will offset losses from the drop in Per Aarsleff's long position.| Carlsberg vs. AP Mller | Carlsberg vs. ROCKWOOL International AS | Carlsberg vs. Royal Unibrew AS | Carlsberg vs. Tryg AS |
| Per Aarsleff vs. Schouw Co | Per Aarsleff vs. ROCKWOOL International AS | Per Aarsleff vs. Royal Unibrew AS | Per Aarsleff vs. Matas AS |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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