Correlation Between Beijer Ref and Lifco AB
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By analyzing existing cross correlation between Beijer Ref AB and Lifco AB, you can compare the effects of market volatilities on Beijer Ref and Lifco 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 Beijer Ref with a short position of Lifco AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijer Ref and Lifco AB.
Diversification Opportunities for Beijer Ref and Lifco AB
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Beijer and Lifco is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Beijer Ref AB and Lifco AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lifco AB and Beijer Ref 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 Beijer Ref AB are associated (or correlated) with Lifco AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lifco AB has no effect on the direction of Beijer Ref i.e., Beijer Ref and Lifco AB go up and down completely randomly.
Pair Corralation between Beijer Ref and Lifco AB
Assuming the 90 days trading horizon Beijer Ref is expected to generate 2.68 times less return on investment than Lifco AB. In addition to that, Beijer Ref is 1.51 times more volatile than Lifco AB. It trades about 0.02 of its total potential returns per unit of risk. Lifco AB is currently generating about 0.08 per unit of volatility. If you would invest 18,232 in Lifco AB on August 28, 2024 and sell it today you would earn a total of 13,528 from holding Lifco AB or generate 74.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijer Ref AB vs. Lifco AB
Performance |
| Timeline |
| Beijer Ref AB |
| Lifco AB |
Beijer Ref and Lifco AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijer Ref and Lifco AB
The main advantage of trading using opposite Beijer Ref and Lifco AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijer Ref position performs unexpectedly, Lifco 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 Lifco AB will offset losses from the drop in Lifco AB's long position.| Beijer Ref vs. Lagercrantz Group AB | Beijer Ref vs. Addtech AB | Beijer Ref vs. AddLife AB | Beijer Ref vs. Bufab Holding AB |
| Lifco AB vs. Indutrade AB | Lifco AB vs. Addtech AB | Lifco AB vs. Teqnion AB | Lifco AB vs. Vitec Software Group |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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