Correlation Between Lidds AB and Kancera AB
Can any of the company-specific risk be diversified away by investing in both Lidds AB and Kancera AB 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 Lidds AB and Kancera AB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lidds AB and Kancera AB, you can compare the effects of market volatilities on Lidds AB and Kancera 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 Lidds AB with a short position of Kancera AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lidds AB and Kancera AB.
Diversification Opportunities for Lidds AB and Kancera AB
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Lidds and Kancera is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Lidds AB and Kancera AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kancera AB and Lidds AB 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 Lidds AB are associated (or correlated) with Kancera AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kancera AB has no effect on the direction of Lidds AB i.e., Lidds AB and Kancera AB go up and down completely randomly.
Pair Corralation between Lidds AB and Kancera AB
Assuming the 90 days trading horizon Lidds AB is expected to under-perform the Kancera AB. In addition to that, Lidds AB is 1.65 times more volatile than Kancera AB. It trades about -0.01 of its total potential returns per unit of risk. Kancera AB is currently generating about -0.01 per unit of volatility. If you would invest 343.00 in Kancera AB on September 1, 2024 and sell it today you would lose (246.00) from holding Kancera AB or give up 71.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.78% |
| Values | Daily Returns |
Lidds AB vs. Kancera AB
Performance |
| Timeline |
| Lidds AB |
| Kancera AB |
Lidds AB and Kancera AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lidds AB and Kancera AB
The main advantage of trading using opposite Lidds AB and Kancera AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lidds AB position performs unexpectedly, Kancera 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 Kancera AB will offset losses from the drop in Kancera AB's long position.| Lidds AB vs. Cantargia AB | Lidds AB vs. BioArctic AB | Lidds AB vs. Oncopeptides AB | Lidds AB vs. Hansa Biopharma AB |
| Kancera AB vs. Combigene AB | Kancera AB vs. Cantargia AB | Kancera AB vs. Fingerprint Cards AB | Kancera AB vs. Spectrumone publ 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Stocks Directory Find actively traded stocks across global markets | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |