Correlation Between Lagercrantz Group and Terranet
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By analyzing existing cross correlation between Lagercrantz Group AB and Terranet AB, you can compare the effects of market volatilities on Lagercrantz Group and Terranet 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 Terranet. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lagercrantz Group and Terranet.
Diversification Opportunities for Lagercrantz Group and Terranet
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Lagercrantz and Terranet is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Lagercrantz Group AB and Terranet AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Terranet 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 Terranet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Terranet AB has no effect on the direction of Lagercrantz Group i.e., Lagercrantz Group and Terranet go up and down completely randomly.
Pair Corralation between Lagercrantz Group and Terranet
Assuming the 90 days trading horizon Lagercrantz Group AB is expected to generate 0.27 times more return on investment than Terranet. However, Lagercrantz Group AB is 3.69 times less risky than Terranet. It trades about 0.08 of its potential returns per unit of risk. Terranet AB is currently generating about -0.01 per unit of risk. If you would invest 10,355 in Lagercrantz Group AB on August 31, 2024 and sell it today you would earn a total of 9,045 from holding Lagercrantz Group AB or generate 87.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Lagercrantz Group AB vs. Terranet AB
Performance |
| Timeline |
| Lagercrantz Group |
| Terranet AB |
Lagercrantz Group and Terranet Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lagercrantz Group and Terranet
The main advantage of trading using opposite Lagercrantz Group and Terranet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lagercrantz Group position performs unexpectedly, Terranet 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 Terranet will offset losses from the drop in Terranet's long position.| Lagercrantz Group vs. DevPort AB | Lagercrantz Group vs. B3 Consulting Group | Lagercrantz Group vs. Micro Systemation AB |
| Terranet vs. Catena Media plc | Terranet vs. Kambi Group PLC | Terranet vs. Betsson AB | Terranet vs. Invisio Communications 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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