Correlation Between Lauritz AS and Sweden BuyersClub
Can any of the company-specific risk be diversified away by investing in both Lauritz AS and Sweden BuyersClub 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 Lauritz AS and Sweden BuyersClub into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lauritz AS and Sweden BuyersClub AB, you can compare the effects of market volatilities on Lauritz AS and Sweden BuyersClub 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 Lauritz AS with a short position of Sweden BuyersClub. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lauritz AS and Sweden BuyersClub.
Diversification Opportunities for Lauritz AS and Sweden BuyersClub
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Lauritz and Sweden is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Lauritz AS and Sweden BuyersClub AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sweden BuyersClub and Lauritz AS 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 Lauritz AS are associated (or correlated) with Sweden BuyersClub. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sweden BuyersClub has no effect on the direction of Lauritz AS i.e., Lauritz AS and Sweden BuyersClub go up and down completely randomly.
Pair Corralation between Lauritz AS and Sweden BuyersClub
If you would invest 346.00 in Sweden BuyersClub AB on September 2, 2024 and sell it today you would earn a total of 46.00 from holding Sweden BuyersClub AB or generate 13.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 98.48% |
| Values | Daily Returns |
Lauritz AS vs. Sweden BuyersClub AB
Performance |
| Timeline |
| Lauritz AS |
| Sweden BuyersClub |
Lauritz AS and Sweden BuyersClub Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lauritz AS and Sweden BuyersClub
The main advantage of trading using opposite Lauritz AS and Sweden BuyersClub positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lauritz AS position performs unexpectedly, Sweden BuyersClub 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 Sweden BuyersClub will offset losses from the drop in Sweden BuyersClub's long position.| Lauritz AS vs. Clean Motion AB | Lauritz AS vs. Mavshack publ AB | Lauritz AS vs. Nicoccino Holding AB | Lauritz AS vs. AVTECH Sweden AB |
| Sweden BuyersClub vs. Lauritz AS | Sweden BuyersClub vs. Lyckegard Group AB | Sweden BuyersClub vs. Gotland Rederi AB | Sweden BuyersClub vs. Brilliant Future 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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