Correlation Between Novo Nordisk and Per Aarsleff
Can any of the company-specific risk be diversified away by investing in both Novo Nordisk 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 Novo Nordisk and Per Aarsleff into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Novo Nordisk AS and Per Aarsleff Holding, you can compare the effects of market volatilities on Novo Nordisk 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 Novo Nordisk with a short position of Per Aarsleff. Check out your portfolio center. Please also check ongoing floating volatility patterns of Novo Nordisk and Per Aarsleff.
Diversification Opportunities for Novo Nordisk and Per Aarsleff
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Novo and Per is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Novo Nordisk 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 Novo Nordisk 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 Novo Nordisk 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 Novo Nordisk i.e., Novo Nordisk and Per Aarsleff go up and down completely randomly.
Pair Corralation between Novo Nordisk and Per Aarsleff
Assuming the 90 days trading horizon Novo Nordisk AS is expected to under-perform the Per Aarsleff. In addition to that, Novo Nordisk is 1.27 times more volatile than Per Aarsleff Holding. It trades about 0.0 of its total potential returns per unit of risk. Per Aarsleff Holding is currently generating about 0.33 per unit of volatility. If you would invest 40,450 in Per Aarsleff Holding on September 1, 2024 and sell it today you would earn a total of 5,650 from holding Per Aarsleff Holding or generate 13.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Novo Nordisk AS vs. Per Aarsleff Holding
Performance |
| Timeline |
| Novo Nordisk AS |
| Per Aarsleff Holding |
Novo Nordisk and Per Aarsleff Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Novo Nordisk and Per Aarsleff
The main advantage of trading using opposite Novo Nordisk and Per Aarsleff positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Novo Nordisk 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.| Novo Nordisk vs. Vestas Wind Systems | Novo Nordisk vs. Danske Bank AS | Novo Nordisk vs. Bavarian Nordic | Novo Nordisk vs. DSV Panalpina 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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