Correlation Between Ferronordic and Lohilo Foods
Can any of the company-specific risk be diversified away by investing in both Ferronordic and Lohilo Foods 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 Ferronordic and Lohilo Foods into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ferronordic AB and Lohilo Foods AB, you can compare the effects of market volatilities on Ferronordic and Lohilo Foods 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 Ferronordic with a short position of Lohilo Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ferronordic and Lohilo Foods.
Diversification Opportunities for Ferronordic and Lohilo Foods
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Ferronordic and Lohilo is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Ferronordic AB and Lohilo Foods AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lohilo Foods AB and Ferronordic 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 Ferronordic AB are associated (or correlated) with Lohilo Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lohilo Foods AB has no effect on the direction of Ferronordic i.e., Ferronordic and Lohilo Foods go up and down completely randomly.
Pair Corralation between Ferronordic and Lohilo Foods
If you would invest 5,920 in Ferronordic AB on October 20, 2024 and sell it today you would earn a total of 120.00 from holding Ferronordic AB or generate 2.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 11.76% |
| Values | Daily Returns |
Ferronordic AB vs. Lohilo Foods AB
Performance |
| Timeline |
| Ferronordic AB |
| Lohilo Foods AB |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Ferronordic and Lohilo Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ferronordic and Lohilo Foods
The main advantage of trading using opposite Ferronordic and Lohilo Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ferronordic position performs unexpectedly, Lohilo Foods 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 Lohilo Foods will offset losses from the drop in Lohilo Foods' long position.| Ferronordic vs. Bergman Beving AB | Ferronordic vs. Lagercrantz Group AB | Ferronordic vs. AddLife AB | Ferronordic vs. Addtech AB |
| Lohilo Foods vs. Smart Eye AB | Lohilo Foods vs. Kamux Suomi Oy | Lohilo Foods vs. Harvia Oyj | Lohilo Foods vs. Kambi Group PLC |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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