Correlation Between Lagercrantz Group and Elekta AB
Can any of the company-specific risk be diversified away by investing in both Lagercrantz Group and Elekta 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 Lagercrantz Group and Elekta AB 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 Elekta AB, you can compare the effects of market volatilities on Lagercrantz Group and Elekta 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 Lagercrantz Group with a short position of Elekta AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lagercrantz Group and Elekta AB.
Diversification Opportunities for Lagercrantz Group and Elekta AB
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lagercrantz and Elekta is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Lagercrantz Group AB and Elekta AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elekta 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 Elekta AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elekta AB has no effect on the direction of Lagercrantz Group i.e., Lagercrantz Group and Elekta AB go up and down completely randomly.
Pair Corralation between Lagercrantz Group and Elekta AB
Assuming the 90 days trading horizon Lagercrantz Group AB is expected to generate 0.81 times more return on investment than Elekta AB. However, Lagercrantz Group AB is 1.23 times less risky than Elekta AB. It trades about 0.05 of its potential returns per unit of risk. Elekta AB is currently generating about -0.08 per unit of risk. If you would invest 17,692 in Lagercrantz Group AB on August 29, 2024 and sell it today you would earn a total of 1,608 from holding Lagercrantz Group AB or generate 9.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lagercrantz Group AB vs. Elekta AB
Performance |
| Timeline |
| Lagercrantz Group |
| Elekta AB |
Lagercrantz Group and Elekta AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lagercrantz Group and Elekta AB
The main advantage of trading using opposite Lagercrantz Group and Elekta AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lagercrantz Group position performs unexpectedly, Elekta 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 Elekta AB will offset losses from the drop in Elekta AB's long position.| Lagercrantz Group vs. Addtech AB | Lagercrantz Group vs. Lifco AB | Lagercrantz Group vs. Indutrade AB | Lagercrantz Group vs. Vitec Software Group |
| Elekta AB vs. Getinge AB ser | Elekta AB vs. AB SKF | Elekta AB vs. ASSA ABLOY AB | Elekta AB vs. Husqvarna 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |