Correlation Between Lagercrantz Group and Fluoguide
Can any of the company-specific risk be diversified away by investing in both Lagercrantz Group and Fluoguide 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 Fluoguide 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 Fluoguide AS, you can compare the effects of market volatilities on Lagercrantz Group and Fluoguide 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 Fluoguide. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lagercrantz Group and Fluoguide.
Diversification Opportunities for Lagercrantz Group and Fluoguide
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Lagercrantz and Fluoguide is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Lagercrantz Group AB and Fluoguide AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fluoguide AS 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 Fluoguide. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fluoguide AS has no effect on the direction of Lagercrantz Group i.e., Lagercrantz Group and Fluoguide go up and down completely randomly.
Pair Corralation between Lagercrantz Group and Fluoguide
Assuming the 90 days trading horizon Lagercrantz Group AB is expected to generate 0.51 times more return on investment than Fluoguide. However, Lagercrantz Group AB is 1.95 times less risky than Fluoguide. It trades about 0.07 of its potential returns per unit of risk. Fluoguide AS is currently generating about 0.01 per unit of risk. If you would invest 11,126 in Lagercrantz Group AB on August 26, 2024 and sell it today you would earn a total of 8,254 from holding Lagercrantz Group AB or generate 74.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lagercrantz Group AB vs. Fluoguide AS
Performance |
| Timeline |
| Lagercrantz Group |
| Fluoguide AS |
Lagercrantz Group and Fluoguide Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lagercrantz Group and Fluoguide
The main advantage of trading using opposite Lagercrantz Group and Fluoguide positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lagercrantz Group position performs unexpectedly, Fluoguide 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 Fluoguide will offset losses from the drop in Fluoguide's long position.| Lagercrantz Group vs. Svedbergs i Dalstorp | Lagercrantz Group vs. Know IT AB | Lagercrantz Group vs. FormPipe Software AB |
| Fluoguide vs. Addtech AB | Fluoguide vs. Lifco AB | Fluoguide vs. Indutrade AB | Fluoguide vs. Lagercrantz Group 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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