Correlation Between Peab AB and Intrum Justitia
Can any of the company-specific risk be diversified away by investing in both Peab AB and Intrum Justitia 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 Peab AB and Intrum Justitia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Peab AB and Intrum Justitia AB, you can compare the effects of market volatilities on Peab AB and Intrum Justitia 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 Peab AB with a short position of Intrum Justitia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Peab AB and Intrum Justitia.
Diversification Opportunities for Peab AB and Intrum Justitia
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Peab and Intrum is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Peab AB and Intrum Justitia AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intrum Justitia AB and Peab AB 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 Peab AB are associated (or correlated) with Intrum Justitia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intrum Justitia AB has no effect on the direction of Peab AB i.e., Peab AB and Intrum Justitia go up and down completely randomly.
Pair Corralation between Peab AB and Intrum Justitia
Assuming the 90 days trading horizon Peab AB is expected to generate 0.26 times more return on investment than Intrum Justitia. However, Peab AB is 3.79 times less risky than Intrum Justitia. It trades about -0.03 of its potential returns per unit of risk. Intrum Justitia AB is currently generating about -0.2 per unit of risk. If you would invest 8,130 in Peab AB on August 29, 2024 and sell it today you would lose (100.00) from holding Peab AB or give up 1.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Peab AB vs. Intrum Justitia AB
Performance |
| Timeline |
| Peab AB |
| Intrum Justitia AB |
Peab AB and Intrum Justitia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Peab AB and Intrum Justitia
The main advantage of trading using opposite Peab AB and Intrum Justitia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Peab AB position performs unexpectedly, Intrum Justitia 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 Intrum Justitia will offset losses from the drop in Intrum Justitia's long position.| Peab AB vs. AVTECH Sweden AB | Peab AB vs. OptiCept Technologies AB | Peab AB vs. Lime Technologies AB | Peab AB vs. Maven Wireless Sweden |
| Intrum Justitia vs. Troax Group AB | Intrum Justitia vs. NIBE Industrier AB | Intrum Justitia vs. Hexatronic Group AB | Intrum Justitia vs. Bufab Holding AB |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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