Correlation Between Hexatronic Group and Lifco AB
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By analyzing existing cross correlation between Hexatronic Group AB and Lifco AB, you can compare the effects of market volatilities on Hexatronic Group and Lifco 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 Hexatronic Group with a short position of Lifco AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hexatronic Group and Lifco AB.
Diversification Opportunities for Hexatronic Group and Lifco AB
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hexatronic and Lifco is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Hexatronic Group AB and Lifco AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lifco AB and Hexatronic 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 Hexatronic Group AB are associated (or correlated) with Lifco AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lifco AB has no effect on the direction of Hexatronic Group i.e., Hexatronic Group and Lifco AB go up and down completely randomly.
Pair Corralation between Hexatronic Group and Lifco AB
Assuming the 90 days trading horizon Hexatronic Group AB is expected to under-perform the Lifco AB. In addition to that, Hexatronic Group is 3.03 times more volatile than Lifco AB. It trades about -0.03 of its total potential returns per unit of risk. Lifco AB is currently generating about 0.09 per unit of volatility. If you would invest 20,633 in Lifco AB on November 19, 2024 and sell it today you would earn a total of 19,047 from holding Lifco AB or generate 92.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Hexatronic Group AB vs. Lifco AB
Performance |
| Timeline |
| Hexatronic Group |
| Lifco AB |
Hexatronic Group and Lifco AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hexatronic Group and Lifco AB
The main advantage of trading using opposite Hexatronic Group and Lifco AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hexatronic Group position performs unexpectedly, Lifco 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 Lifco AB will offset losses from the drop in Lifco AB's long position.| Hexatronic Group vs. Samhllsbyggnadsbolaget i Norden | Hexatronic Group vs. Sinch AB | Hexatronic Group vs. Embracer Group AB | Hexatronic Group vs. Evolution AB |
| Lifco AB vs. Indutrade AB | Lifco AB vs. Addtech AB | Lifco AB vs. Teqnion AB | Lifco AB vs. Vitec Software Group |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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