Correlation Between H Lundbeck and Solar AS
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By analyzing existing cross correlation between H Lundbeck AS and Solar AS, you can compare the effects of market volatilities on H Lundbeck and Solar AS 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 H Lundbeck with a short position of Solar AS. Check out your portfolio center. Please also check ongoing floating volatility patterns of H Lundbeck and Solar AS.
Diversification Opportunities for H Lundbeck and Solar AS
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between HLUN-A and Solar is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding H Lundbeck AS and Solar AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Solar AS and H Lundbeck 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 H Lundbeck AS are associated (or correlated) with Solar AS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Solar AS has no effect on the direction of H Lundbeck i.e., H Lundbeck and Solar AS go up and down completely randomly.
Pair Corralation between H Lundbeck and Solar AS
Assuming the 90 days trading horizon H Lundbeck AS is expected to generate 0.92 times more return on investment than Solar AS. However, H Lundbeck AS is 1.09 times less risky than Solar AS. It trades about 0.02 of its potential returns per unit of risk. Solar AS is currently generating about -0.06 per unit of risk. If you would invest 3,251 in H Lundbeck AS on August 29, 2024 and sell it today you would earn a total of 304.00 from holding H Lundbeck AS or generate 9.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
H Lundbeck AS vs. Solar AS
Performance |
| Timeline |
| H Lundbeck AS |
| Solar AS |
H Lundbeck and Solar AS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with H Lundbeck and Solar AS
The main advantage of trading using opposite H Lundbeck and Solar AS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if H Lundbeck position performs unexpectedly, Solar AS 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 Solar AS will offset losses from the drop in Solar AS's long position.| H Lundbeck vs. GN Store Nord | H Lundbeck vs. FLSmidth Co | H Lundbeck vs. ALK Abell AS | H Lundbeck vs. Ambu AS |
| Solar AS vs. Matas AS | Solar AS vs. NKT AS | Solar AS vs. ROCKWOOL International AS | Solar AS vs. Dampskibsselskabet Norden AS |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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