Correlation Between Idogen AB and Lipum AB
Can any of the company-specific risk be diversified away by investing in both Idogen AB and Lipum AB 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 Idogen AB and Lipum AB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Idogen AB and Lipum AB, you can compare the effects of market volatilities on Idogen AB and Lipum 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 Idogen AB with a short position of Lipum AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Idogen AB and Lipum AB.
Diversification Opportunities for Idogen AB and Lipum AB
Pay attention - limited upside
The 3 months correlation between Idogen and Lipum is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Idogen AB and Lipum AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lipum AB and Idogen AB 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 Idogen AB are associated (or correlated) with Lipum AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lipum AB has no effect on the direction of Idogen AB i.e., Idogen AB and Lipum AB go up and down completely randomly.
Pair Corralation between Idogen AB and Lipum AB
If you would invest 1,410 in Lipum AB on August 29, 2024 and sell it today you would earn a total of 250.00 from holding Lipum AB or generate 17.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Idogen AB vs. Lipum AB
Performance |
| Timeline |
| Idogen AB |
| Lipum AB |
Idogen AB and Lipum AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Idogen AB and Lipum AB
The main advantage of trading using opposite Idogen AB and Lipum AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Idogen AB position performs unexpectedly, Lipum 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 Lipum AB will offset losses from the drop in Lipum AB's long position.The idea behind Idogen AB and Lipum AB pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Lipum AB vs. Ascelia Pharma AB | Lipum AB vs. NextCell Pharma AB | Lipum AB vs. Annexin Pharmaceuticals AB | Lipum AB vs. AlzeCure Pharma |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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