Correlation Between Per Aarsleff and NTG Nordic
Can any of the company-specific risk be diversified away by investing in both Per Aarsleff and NTG Nordic 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 NTG Nordic 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 NTG Nordic Transport, you can compare the effects of market volatilities on Per Aarsleff and NTG Nordic 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 NTG Nordic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Per Aarsleff and NTG Nordic.
Diversification Opportunities for Per Aarsleff and NTG Nordic
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Per and NTG is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Per Aarsleff Holding and NTG Nordic Transport in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NTG Nordic Transport 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 NTG Nordic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NTG Nordic Transport has no effect on the direction of Per Aarsleff i.e., Per Aarsleff and NTG Nordic go up and down completely randomly.
Pair Corralation between Per Aarsleff and NTG Nordic
Assuming the 90 days trading horizon Per Aarsleff Holding is expected to generate 0.63 times more return on investment than NTG Nordic. However, Per Aarsleff Holding is 1.58 times less risky than NTG Nordic. It trades about 0.12 of its potential returns per unit of risk. NTG Nordic Transport is currently generating about 0.01 per unit of risk. If you would invest 31,271 in Per Aarsleff Holding on August 25, 2024 and sell it today you would earn a total of 13,929 from holding Per Aarsleff Holding or generate 44.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Per Aarsleff Holding vs. NTG Nordic Transport
Performance |
| Timeline |
| Per Aarsleff Holding |
| NTG Nordic Transport |
Per Aarsleff and NTG Nordic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Per Aarsleff and NTG Nordic
The main advantage of trading using opposite Per Aarsleff and NTG Nordic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Per Aarsleff position performs unexpectedly, NTG Nordic 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 NTG Nordic will offset losses from the drop in NTG Nordic'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 |
| NTG Nordic vs. North Media AS | NTG Nordic vs. HH International AS | NTG Nordic vs. Per Aarsleff Holding | NTG Nordic vs. First Farms 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |