Correlation Between Lagercrantz Group and Beijer Ref
Can any of the company-specific risk be diversified away by investing in both Lagercrantz Group and Beijer Ref 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 Lagercrantz Group and Beijer Ref into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lagercrantz Group AB and Beijer Ref AB, you can compare the effects of market volatilities on Lagercrantz Group and Beijer Ref 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 Lagercrantz Group with a short position of Beijer Ref. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lagercrantz Group and Beijer Ref.
Diversification Opportunities for Lagercrantz Group and Beijer Ref
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Lagercrantz and Beijer is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Lagercrantz Group AB and Beijer Ref AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijer Ref AB and Lagercrantz 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 Lagercrantz Group AB are associated (or correlated) with Beijer Ref. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijer Ref AB has no effect on the direction of Lagercrantz Group i.e., Lagercrantz Group and Beijer Ref go up and down completely randomly.
Pair Corralation between Lagercrantz Group and Beijer Ref
Assuming the 90 days trading horizon Lagercrantz Group AB is expected to generate 0.84 times more return on investment than Beijer Ref. However, Lagercrantz Group AB is 1.19 times less risky than Beijer Ref. It trades about 0.05 of its potential returns per unit of risk. Beijer Ref AB is currently generating about 0.0 per unit of risk. If you would invest 17,613 in Lagercrantz Group AB on August 28, 2024 and sell it today you would earn a total of 1,897 from holding Lagercrantz Group AB or generate 10.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lagercrantz Group AB vs. Beijer Ref AB
Performance |
| Timeline |
| Lagercrantz Group |
| Beijer Ref AB |
Lagercrantz Group and Beijer Ref Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lagercrantz Group and Beijer Ref
The main advantage of trading using opposite Lagercrantz Group and Beijer Ref positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lagercrantz Group position performs unexpectedly, Beijer Ref 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 Beijer Ref will offset losses from the drop in Beijer Ref's long position.| Lagercrantz Group vs. Addtech AB | Lagercrantz Group vs. Lifco AB | Lagercrantz Group vs. Indutrade AB | Lagercrantz Group vs. Vitec Software Group |
| Beijer Ref vs. Lagercrantz Group AB | Beijer Ref vs. Addtech AB | Beijer Ref vs. AddLife AB | Beijer Ref vs. Bufab Holding 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |