Correlation Between Divio Technologies and Lipum AB
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By analyzing existing cross correlation between Divio Technologies AB and Lipum AB, you can compare the effects of market volatilities on Divio Technologies and Lipum 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 Divio Technologies with a short position of Lipum AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Divio Technologies and Lipum AB.
Diversification Opportunities for Divio Technologies and Lipum AB
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Divio and Lipum is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Divio Technologies AB and Lipum AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lipum AB and Divio Technologies 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 Divio Technologies AB are associated (or correlated) with Lipum AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lipum AB has no effect on the direction of Divio Technologies i.e., Divio Technologies and Lipum AB go up and down completely randomly.
Pair Corralation between Divio Technologies and Lipum AB
Assuming the 90 days trading horizon Divio Technologies AB is expected to under-perform the Lipum AB. In addition to that, Divio Technologies is 1.59 times more volatile than Lipum AB. It trades about -0.18 of its total potential returns per unit of risk. Lipum AB is currently generating about 0.3 per unit of volatility. If you would invest 1,410 in Lipum AB on August 29, 2024 and sell it today you would earn a total of 280.00 from holding Lipum AB or generate 19.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Divio Technologies AB vs. Lipum AB
Performance |
| Timeline |
| Divio Technologies |
| Lipum AB |
Divio Technologies and Lipum AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Divio Technologies and Lipum AB
The main advantage of trading using opposite Divio Technologies and Lipum AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Divio Technologies position performs unexpectedly, Lipum 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 Lipum AB will offset losses from the drop in Lipum AB's long position.| Divio Technologies vs. Spectrumone publ AB | Divio Technologies vs. Media and Games | Divio Technologies vs. Enersize Oy | Divio Technologies vs. Cantargia AB |
| Lipum AB vs. Ascelia Pharma AB | Lipum AB vs. NextCell Pharma AB | Lipum AB vs. Annexin Pharmaceuticals AB | Lipum AB vs. AlzeCure Pharma |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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