Correlation Between Lagercrantz Group and Getinge AB
Can any of the company-specific risk be diversified away by investing in both Lagercrantz Group and Getinge 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 Getinge 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 Getinge AB ser, you can compare the effects of market volatilities on Lagercrantz Group and Getinge 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 Getinge AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lagercrantz Group and Getinge AB.
Diversification Opportunities for Lagercrantz Group and Getinge AB
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Lagercrantz and Getinge is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Lagercrantz Group AB and Getinge AB ser in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Getinge AB ser 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 Getinge AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Getinge AB ser has no effect on the direction of Lagercrantz Group i.e., Lagercrantz Group and Getinge AB go up and down completely randomly.
Pair Corralation between Lagercrantz Group and Getinge AB
Assuming the 90 days trading horizon Lagercrantz Group AB is expected to generate 0.73 times more return on investment than Getinge AB. However, Lagercrantz Group AB is 1.37 times less risky than Getinge AB. It trades about -0.16 of its potential returns per unit of risk. Getinge AB ser is currently generating about -0.22 per unit of risk. If you would invest 20,780 in Lagercrantz Group AB on September 1, 2024 and sell it today you would lose (980.00) from holding Lagercrantz Group AB or give up 4.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Lagercrantz Group AB vs. Getinge AB ser
Performance |
| Timeline |
| Lagercrantz Group |
| Getinge AB ser |
Lagercrantz Group and Getinge AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lagercrantz Group and Getinge AB
The main advantage of trading using opposite Lagercrantz Group and Getinge AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lagercrantz Group position performs unexpectedly, Getinge 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 Getinge AB will offset losses from the drop in Getinge 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 |
| Getinge AB vs. AddLife AB | Getinge AB vs. Biotage AB | Getinge AB vs. Synsam AB | Getinge AB vs. Bonesupport 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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