Correlation Between Lagercrantz Group and Lifco AB
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By analyzing existing cross correlation between Lagercrantz Group AB and Lifco AB, you can compare the effects of market volatilities on Lagercrantz Group and Lifco 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 Lifco AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lagercrantz Group and Lifco AB.
Diversification Opportunities for Lagercrantz Group and Lifco AB
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Lagercrantz and Lifco is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Lagercrantz Group AB and Lifco AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lifco 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 Lifco AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lifco AB has no effect on the direction of Lagercrantz Group i.e., Lagercrantz Group and Lifco AB go up and down completely randomly.
Pair Corralation between Lagercrantz Group and Lifco AB
Assuming the 90 days trading horizon Lagercrantz Group AB is expected to generate 1.0 times more return on investment than Lifco AB. However, Lagercrantz Group AB is 1.0 times less risky than Lifco AB. It trades about 0.19 of its potential returns per unit of risk. Lifco AB is currently generating about 0.16 per unit of risk. If you would invest 19,510 in Lagercrantz Group AB on October 25, 2024 and sell it today you would earn a total of 2,150 from holding Lagercrantz Group AB or generate 11.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lagercrantz Group AB vs. Lifco AB
Performance |
| Timeline |
| Lagercrantz Group |
| Lifco AB |
Lagercrantz Group and Lifco AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lagercrantz Group and Lifco AB
The main advantage of trading using opposite Lagercrantz Group and Lifco AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lagercrantz Group position performs unexpectedly, Lifco 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 Lifco AB will offset losses from the drop in Lifco 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 |
| Lifco AB vs. Indutrade AB | Lifco AB vs. Addtech AB | Lifco AB vs. Teqnion AB | Lifco AB vs. Vitec Software Group |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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