Correlation Between Investment and Lifco AB
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By analyzing existing cross correlation between Investment AB Latour and Lifco AB, you can compare the effects of market volatilities on Investment 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 Investment with a short position of Lifco AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Investment and Lifco AB.
Diversification Opportunities for Investment and Lifco AB
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Investment and Lifco is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Investment AB Latour and Lifco AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lifco AB and Investment 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 Investment AB Latour 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 Investment i.e., Investment and Lifco AB go up and down completely randomly.
Pair Corralation between Investment and Lifco AB
Assuming the 90 days trading horizon Investment AB Latour is expected to under-perform the Lifco AB. But the stock apears to be less risky and, when comparing its historical volatility, Investment AB Latour is 1.05 times less risky than Lifco AB. The stock trades about -0.06 of its potential returns per unit of risk. The Lifco AB is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 32,800 in Lifco AB on October 26, 2024 and sell it today you would earn a total of 2,140 from holding Lifco AB or generate 6.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Investment AB Latour vs. Lifco AB
Performance |
| Timeline |
| Investment AB Latour |
| Lifco AB |
Investment and Lifco AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Investment and Lifco AB
The main advantage of trading using opposite Investment and Lifco AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Investment 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.| Investment vs. Kinnevik Investment AB | Investment vs. Investor AB ser | Investment vs. L E Lundbergfretagen | Investment vs. Industrivarden AB ser |
| 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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