Correlation Between Intrum Justitia and Peab AB
Can any of the company-specific risk be diversified away by investing in both Intrum Justitia and Peab AB 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 Intrum Justitia and Peab AB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intrum Justitia AB and Peab AB, you can compare the effects of market volatilities on Intrum Justitia and Peab AB 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 Intrum Justitia with a short position of Peab AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intrum Justitia and Peab AB.
Diversification Opportunities for Intrum Justitia and Peab AB
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Intrum and Peab is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Intrum Justitia AB and Peab AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Peab AB and Intrum Justitia 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 Intrum Justitia AB are associated (or correlated) with Peab AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Peab AB has no effect on the direction of Intrum Justitia i.e., Intrum Justitia and Peab AB go up and down completely randomly.
Pair Corralation between Intrum Justitia and Peab AB
Assuming the 90 days trading horizon Intrum Justitia AB is expected to under-perform the Peab AB. In addition to that, Intrum Justitia is 3.79 times more volatile than Peab AB. It trades about -0.2 of its total potential returns per unit of risk. Peab AB is currently generating about -0.03 per unit of volatility. If you would invest 8,130 in Peab AB on August 29, 2024 and sell it today you would lose (100.00) from holding Peab AB or give up 1.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intrum Justitia AB vs. Peab AB
Performance |
| Timeline |
| Intrum Justitia AB |
| Peab AB |
Intrum Justitia and Peab AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intrum Justitia and Peab AB
The main advantage of trading using opposite Intrum Justitia and Peab AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intrum Justitia position performs unexpectedly, Peab AB 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 Peab AB will offset losses from the drop in Peab AB's long position.| Intrum Justitia vs. Troax Group AB | Intrum Justitia vs. NIBE Industrier AB | Intrum Justitia vs. Hexatronic Group AB | Intrum Justitia vs. Bufab Holding AB |
| Peab AB vs. AVTECH Sweden AB | Peab AB vs. OptiCept Technologies AB | Peab AB vs. Lime Technologies AB | Peab AB vs. Maven Wireless Sweden |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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