Correlation Between Per Aarsleff and SP Group
Can any of the company-specific risk be diversified away by investing in both Per Aarsleff and SP 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 SP 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 SP Group AS, you can compare the effects of market volatilities on Per Aarsleff and SP 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 SP Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Per Aarsleff and SP Group.
Diversification Opportunities for Per Aarsleff and SP Group
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Per and SPG is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Per Aarsleff Holding and SP Group AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SP 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 SP Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SP Group AS has no effect on the direction of Per Aarsleff i.e., Per Aarsleff and SP Group go up and down completely randomly.
Pair Corralation between Per Aarsleff and SP Group
Assuming the 90 days trading horizon Per Aarsleff is expected to generate 1.24 times less return on investment than SP Group. But when comparing it to its historical volatility, Per Aarsleff Holding is 1.58 times less risky than SP Group. It trades about 0.13 of its potential returns per unit of risk. SP Group AS is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 18,200 in SP Group AS on November 5, 2024 and sell it today you would earn a total of 12,300 from holding SP Group AS or generate 67.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Per Aarsleff Holding vs. SP Group AS
Performance |
| Timeline |
| Per Aarsleff Holding |
| SP Group AS |
Per Aarsleff and SP Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Per Aarsleff and SP Group
The main advantage of trading using opposite Per Aarsleff and SP Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Per Aarsleff position performs unexpectedly, SP 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 SP Group will offset losses from the drop in SP 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 |
| SP Group vs. Schouw Co | SP Group vs. Per Aarsleff Holding | SP Group vs. HH International AS | SP Group vs. DFDS 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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