Correlation Between Havsfrun Investment and Lipigon Pharmaceuticals
Can any of the company-specific risk be diversified away by investing in both Havsfrun Investment and Lipigon Pharmaceuticals 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 Havsfrun Investment and Lipigon Pharmaceuticals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Havsfrun Investment AB and Lipigon Pharmaceuticals AB, you can compare the effects of market volatilities on Havsfrun Investment and Lipigon Pharmaceuticals 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 Havsfrun Investment with a short position of Lipigon Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Havsfrun Investment and Lipigon Pharmaceuticals.
Diversification Opportunities for Havsfrun Investment and Lipigon Pharmaceuticals
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Havsfrun and Lipigon is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Havsfrun Investment AB and Lipigon Pharmaceuticals AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lipigon Pharmaceuticals and Havsfrun Investment 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 Havsfrun Investment AB are associated (or correlated) with Lipigon Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lipigon Pharmaceuticals has no effect on the direction of Havsfrun Investment i.e., Havsfrun Investment and Lipigon Pharmaceuticals go up and down completely randomly.
Pair Corralation between Havsfrun Investment and Lipigon Pharmaceuticals
Assuming the 90 days trading horizon Havsfrun Investment AB is expected to generate 0.42 times more return on investment than Lipigon Pharmaceuticals. However, Havsfrun Investment AB is 2.39 times less risky than Lipigon Pharmaceuticals. It trades about 0.01 of its potential returns per unit of risk. Lipigon Pharmaceuticals AB is currently generating about 0.0 per unit of risk. If you would invest 1,309 in Havsfrun Investment AB on September 2, 2024 and sell it today you would lose (89.00) from holding Havsfrun Investment AB or give up 6.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Havsfrun Investment AB vs. Lipigon Pharmaceuticals AB
Performance |
| Timeline |
| Havsfrun Investment |
| Lipigon Pharmaceuticals |
Havsfrun Investment and Lipigon Pharmaceuticals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Havsfrun Investment and Lipigon Pharmaceuticals
The main advantage of trading using opposite Havsfrun Investment and Lipigon Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Havsfrun Investment position performs unexpectedly, Lipigon Pharmaceuticals 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 Lipigon Pharmaceuticals will offset losses from the drop in Lipigon Pharmaceuticals' long position.| Havsfrun Investment vs. Media and Games | Havsfrun Investment vs. KABE Group AB | Havsfrun Investment vs. IAR Systems Group | Havsfrun Investment vs. Norva24 Group AB |
| Lipigon Pharmaceuticals vs. Hansa Biopharma AB | Lipigon Pharmaceuticals vs. Saniona AB | Lipigon Pharmaceuticals vs. Oncopeptides AB |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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