Correlation Between Skanska AB and Concrete Pumping

Can any of the company-specific risk be diversified away by investing in both Skanska AB and Concrete Pumping 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 Skanska AB and Concrete Pumping into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Skanska AB ser and Concrete Pumping Holdings, you can compare the effects of market volatilities on Skanska AB and Concrete Pumping 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 Skanska AB with a short position of Concrete Pumping. Check out your portfolio center. Please also check ongoing floating volatility patterns of Skanska AB and Concrete Pumping.

Diversification Opportunities for Skanska AB and Concrete Pumping

0.0

Correlation Coefficient

Skanska AB  Concrete Pumping

Pay attention - limited upside

The 3 months correlation between Skanska and Concrete is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Skanska AB ser and Concrete Pumping Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Concrete Pumping Holdings and Skanska 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 Skanska AB ser are associated (or correlated) with Concrete Pumping. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Concrete Pumping Holdings has no effect on the direction of Skanska AB i.e., Skanska AB and Concrete Pumping go up and down completely randomly.

Pair Corralation between Skanska AB and Concrete Pumping

If you would invest  2,112  in Skanska AB ser on December 30, 2024 and sell it today you would earn a total of  155.00  from holding Skanska AB ser or generate 7.34% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Skanska AB ser  vs.  Concrete Pumping Holdings

Skanska AB ser

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Skanska AB ser are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Skanska AB may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Concrete Pumping Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days Concrete Pumping Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Concrete Pumping is not utilizing all of its potentials. The current stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Skanska AB and Concrete Pumping

The main advantage of trading using opposite Skanska AB and Concrete Pumping positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Skanska AB position performs unexpectedly, Concrete Pumping 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 Concrete Pumping will offset losses from the drop in Concrete Pumping's long position.

The idea behind Skanska AB ser and Concrete Pumping Holdings pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..