Correlation Between Footway Group and Lohilo Foods
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By analyzing existing cross correlation between Footway Group AB and Lohilo Foods AB, you can compare the effects of market volatilities on Footway Group 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 Footway Group with a short position of Lohilo Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Footway Group and Lohilo Foods.
Diversification Opportunities for Footway Group and Lohilo Foods
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Footway and Lohilo is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Footway Group 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 Footway 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 Footway Group 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 Footway Group i.e., Footway Group and Lohilo Foods go up and down completely randomly.
Pair Corralation between Footway Group and Lohilo Foods
Assuming the 90 days trading horizon Footway Group AB is expected to generate 0.58 times more return on investment than Lohilo Foods. However, Footway Group AB is 1.72 times less risky than Lohilo Foods. It trades about -0.26 of its potential returns per unit of risk. Lohilo Foods AB is currently generating about -0.17 per unit of risk. If you would invest 3,600 in Footway Group AB on September 1, 2024 and sell it today you would lose (680.00) from holding Footway Group AB or give up 18.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Footway Group AB vs. Lohilo Foods AB
Performance |
| Timeline |
| Footway Group AB |
| Lohilo Foods AB |
Footway Group and Lohilo Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Footway Group and Lohilo Foods
The main advantage of trading using opposite Footway Group and Lohilo Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Footway Group 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.| Footway Group vs. Beowulf Mining PLC | Footway Group vs. USWE Sports AB | Footway Group vs. Lohilo Foods AB | Footway Group vs. Nexam Chemical Holding |
| 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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