Correlation Between Per Aarsleff and HH International
Can any of the company-specific risk be diversified away by investing in both Per Aarsleff and HH International 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 HH International 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 HH International AS, you can compare the effects of market volatilities on Per Aarsleff and HH International 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 HH International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Per Aarsleff and HH International.
Diversification Opportunities for Per Aarsleff and HH International
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Per and HH International is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Per Aarsleff Holding and HH International AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HH International 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 HH International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HH International has no effect on the direction of Per Aarsleff i.e., Per Aarsleff and HH International go up and down completely randomly.
Pair Corralation between Per Aarsleff and HH International
Assuming the 90 days trading horizon Per Aarsleff Holding is expected to generate 0.77 times more return on investment than HH International. However, Per Aarsleff Holding is 1.31 times less risky than HH International. It trades about 0.11 of its potential returns per unit of risk. HH International AS is currently generating about -0.12 per unit of risk. If you would invest 37,800 in Per Aarsleff Holding on August 25, 2024 and sell it today you would earn a total of 7,400 from holding Per Aarsleff Holding or generate 19.58% 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. HH International AS
Performance |
| Timeline |
| Per Aarsleff Holding |
| HH International |
Per Aarsleff and HH International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Per Aarsleff and HH International
The main advantage of trading using opposite Per Aarsleff and HH International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Per Aarsleff position performs unexpectedly, HH International 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 HH International will offset losses from the drop in HH International'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 |
| HH International vs. Flgger group AS | HH International vs. SKAKO AS | HH International vs. Solar AS | HH International vs. Brd Klee 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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