Correlation Between Per Aarsleff and Flgger Group
Can any of the company-specific risk be diversified away by investing in both Per Aarsleff and Flgger Group 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 Per Aarsleff and Flgger Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Per Aarsleff Holding and Flgger group AS, you can compare the effects of market volatilities on Per Aarsleff and Flgger Group 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 Per Aarsleff with a short position of Flgger Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Per Aarsleff and Flgger Group.
Diversification Opportunities for Per Aarsleff and Flgger Group
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Per and Flgger is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Per Aarsleff Holding and Flgger group AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Flgger group AS and Per Aarsleff 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 Per Aarsleff Holding are associated (or correlated) with Flgger Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Flgger group AS has no effect on the direction of Per Aarsleff i.e., Per Aarsleff and Flgger Group go up and down completely randomly.
Pair Corralation between Per Aarsleff and Flgger Group
Assuming the 90 days trading horizon Per Aarsleff Holding is expected to generate 1.18 times more return on investment than Flgger Group. However, Per Aarsleff is 1.18 times more volatile than Flgger group AS. It trades about 0.13 of its potential returns per unit of risk. Flgger group AS is currently generating about -0.02 per unit of risk. If you would invest 33,250 in Per Aarsleff Holding on August 25, 2024 and sell it today you would earn a total of 11,950 from holding Per Aarsleff Holding or generate 35.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Per Aarsleff Holding vs. Flgger group AS
Performance |
| Timeline |
| Per Aarsleff Holding |
| Flgger group AS |
Per Aarsleff and Flgger Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Per Aarsleff and Flgger Group
The main advantage of trading using opposite Per Aarsleff and Flgger Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Per Aarsleff position performs unexpectedly, Flgger Group 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 Flgger Group will offset losses from the drop in Flgger Group's long position.| Per Aarsleff vs. Schouw Co | Per Aarsleff vs. ROCKWOOL International AS | Per Aarsleff vs. Royal Unibrew AS | Per Aarsleff vs. Matas AS |
| Flgger Group vs. Per Aarsleff Holding | Flgger Group vs. North Media AS | Flgger Group vs. HH International AS | Flgger Group 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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