Correlation Between IZafe Group and Lipum AB
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By analyzing existing cross correlation between iZafe Group AB and Lipum AB, you can compare the effects of market volatilities on IZafe Group 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 IZafe Group with a short position of Lipum AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of IZafe Group and Lipum AB.
Diversification Opportunities for IZafe Group and Lipum AB
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between IZafe and Lipum is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding iZafe Group AB and Lipum AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lipum AB and IZafe 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 iZafe Group 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 IZafe Group i.e., IZafe Group and Lipum AB go up and down completely randomly.
Pair Corralation between IZafe Group and Lipum AB
Assuming the 90 days trading horizon iZafe Group AB is expected to under-perform the Lipum AB. In addition to that, IZafe Group is 1.89 times more volatile than Lipum AB. It trades about -0.07 of its total potential returns per unit of risk. Lipum AB is currently generating about 0.28 per unit of volatility. If you would invest 1,410 in Lipum AB on August 24, 2024 and sell it today you would earn a total of 300.00 from holding Lipum AB or generate 21.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
iZafe Group AB vs. Lipum AB
Performance |
| Timeline |
| iZafe Group AB |
| Lipum AB |
IZafe Group and Lipum AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IZafe Group and Lipum AB
The main advantage of trading using opposite IZafe Group and Lipum AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IZafe Group 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.| IZafe Group vs. Sprint Bioscience AB | IZafe Group vs. Acarix AS | IZafe Group vs. Annexin Pharmaceuticals 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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