Correlation Between Lagercrantz Group and NCAB
Can any of the company-specific risk be diversified away by investing in both Lagercrantz Group and NCAB 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 NCAB 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 NCAB Group, you can compare the effects of market volatilities on Lagercrantz Group and NCAB 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 NCAB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lagercrantz Group and NCAB.
Diversification Opportunities for Lagercrantz Group and NCAB
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lagercrantz and NCAB is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Lagercrantz Group AB and NCAB Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NCAB Group 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 NCAB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NCAB Group has no effect on the direction of Lagercrantz Group i.e., Lagercrantz Group and NCAB go up and down completely randomly.
Pair Corralation between Lagercrantz Group and NCAB
Assuming the 90 days trading horizon Lagercrantz Group AB is expected to generate 1.15 times more return on investment than NCAB. However, Lagercrantz Group is 1.15 times more volatile than NCAB Group. It trades about 0.08 of its potential returns per unit of risk. NCAB Group is currently generating about -0.22 per unit of risk. If you would invest 18,710 in Lagercrantz Group AB on August 25, 2024 and sell it today you would earn a total of 670.00 from holding Lagercrantz Group AB or generate 3.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Lagercrantz Group AB vs. NCAB Group
Performance |
| Timeline |
| Lagercrantz Group |
| NCAB Group |
Lagercrantz Group and NCAB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lagercrantz Group and NCAB
The main advantage of trading using opposite Lagercrantz Group and NCAB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lagercrantz Group position performs unexpectedly, NCAB 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 NCAB will offset losses from the drop in NCAB's long position.| Lagercrantz Group vs. Svedbergs i Dalstorp | Lagercrantz Group vs. Know IT AB | Lagercrantz Group vs. FormPipe Software AB |
| NCAB vs. MIPS AB | NCAB vs. Hexatronic Group AB | NCAB vs. Lagercrantz Group AB | NCAB 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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