Correlation Between Jyske Bank and Per Aarsleff
Can any of the company-specific risk be diversified away by investing in both Jyske Bank 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 Jyske Bank and Per Aarsleff into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jyske Bank AS and Per Aarsleff Holding, you can compare the effects of market volatilities on Jyske Bank 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 Jyske Bank with a short position of Per Aarsleff. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jyske Bank and Per Aarsleff.
Diversification Opportunities for Jyske Bank and Per Aarsleff
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Jyske and Per is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Jyske Bank 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 Jyske Bank 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 Jyske Bank 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 Jyske Bank i.e., Jyske Bank and Per Aarsleff go up and down completely randomly.
Pair Corralation between Jyske Bank and Per Aarsleff
Assuming the 90 days trading horizon Jyske Bank is expected to generate 5.23 times less return on investment than Per Aarsleff. But when comparing it to its historical volatility, Jyske Bank AS is 1.01 times less risky than Per Aarsleff. It trades about 0.07 of its potential returns per unit of risk. Per Aarsleff Holding is currently generating about 0.36 of returns per unit of risk over similar time horizon. If you would invest 46,665 in Per Aarsleff Holding on November 22, 2024 and sell it today you would earn a total of 4,835 from holding Per Aarsleff Holding or generate 10.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jyske Bank AS vs. Per Aarsleff Holding
Performance |
| Timeline |
| Jyske Bank AS |
| Per Aarsleff Holding |
Jyske Bank and Per Aarsleff Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jyske Bank and Per Aarsleff
The main advantage of trading using opposite Jyske Bank and Per Aarsleff positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jyske Bank 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.| Jyske Bank vs. TROPHY GAMES Development | Jyske Bank vs. Djurslands Bank | Jyske Bank vs. Formuepleje Mix Medium | Jyske Bank vs. Cessatech 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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