Correlation Between Ashtead Group and Intrum AB
Can any of the company-specific risk be diversified away by investing in both Ashtead Group and Intrum AB 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 Ashtead Group and Intrum AB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ashtead Group PLC and Intrum AB, you can compare the effects of market volatilities on Ashtead Group and Intrum AB 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 Ashtead Group with a short position of Intrum AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ashtead Group and Intrum AB.
Diversification Opportunities for Ashtead Group and Intrum AB
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Ashtead and Intrum is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Ashtead Group PLC and Intrum AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intrum AB and Ashtead Group 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 Ashtead Group PLC are associated (or correlated) with Intrum AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intrum AB has no effect on the direction of Ashtead Group i.e., Ashtead Group and Intrum AB go up and down completely randomly.
Pair Corralation between Ashtead Group and Intrum AB
Assuming the 90 days trading horizon Ashtead Group PLC is expected to generate 0.54 times more return on investment than Intrum AB. However, Ashtead Group PLC is 1.85 times less risky than Intrum AB. It trades about 0.15 of its potential returns per unit of risk. Intrum AB is currently generating about -0.2 per unit of risk. If you would invest 468,468 in Ashtead Group PLC on July 22, 2025 and sell it today you would earn a total of 62,932 from holding Ashtead Group PLC or generate 13.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.46% |
| Values | Daily Returns |
Ashtead Group PLC vs. Intrum AB
Performance |
| Timeline |
| Ashtead Group PLC |
| Intrum AB |
Ashtead Group and Intrum AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ashtead Group and Intrum AB
The main advantage of trading using opposite Ashtead Group and Intrum AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ashtead Group position performs unexpectedly, Intrum AB 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 AB will offset losses from the drop in Intrum AB's long position.| Ashtead Group vs. Resolute Mining Limited | Ashtead Group vs. Taiwan Semiconductor Manufacturing | Ashtead Group vs. Thor Mining PLC | Ashtead Group vs. Systemair AB |
| Intrum AB vs. Batm Advanced Communications | Intrum AB vs. Westlake Chemical Corp | Intrum AB vs. Spirent Communications plc | Intrum AB vs. Eastman Chemical Co |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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