Correlation Between Lifco AB and Alimak Hek
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By analyzing existing cross correlation between Lifco AB and Alimak Hek Group, you can compare the effects of market volatilities on Lifco AB and Alimak Hek 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 Lifco AB with a short position of Alimak Hek. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lifco AB and Alimak Hek.
Diversification Opportunities for Lifco AB and Alimak Hek
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Lifco and Alimak is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Lifco AB and Alimak Hek Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alimak Hek Group and Lifco 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 Lifco AB are associated (or correlated) with Alimak Hek. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alimak Hek Group has no effect on the direction of Lifco AB i.e., Lifco AB and Alimak Hek go up and down completely randomly.
Pair Corralation between Lifco AB and Alimak Hek
Assuming the 90 days trading horizon Lifco AB is expected to generate 1.11 times more return on investment than Alimak Hek. However, Lifco AB is 1.11 times more volatile than Alimak Hek Group. It trades about 0.34 of its potential returns per unit of risk. Alimak Hek Group is currently generating about -0.09 per unit of risk. If you would invest 32,460 in Lifco AB on November 4, 2024 and sell it today you would earn a total of 4,040 from holding Lifco AB or generate 12.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lifco AB vs. Alimak Hek Group
Performance |
| Timeline |
| Lifco AB |
| Alimak Hek Group |
Lifco AB and Alimak Hek Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lifco AB and Alimak Hek
The main advantage of trading using opposite Lifco AB and Alimak Hek positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lifco AB position performs unexpectedly, Alimak Hek 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 Alimak Hek will offset losses from the drop in Alimak Hek's long position.| Lifco AB vs. Indutrade AB | Lifco AB vs. Addtech AB | Lifco AB vs. Teqnion AB | Lifco AB vs. Vitec Software Group |
| Alimak Hek vs. Inwido AB | Alimak Hek vs. Bufab Holding AB | Alimak Hek vs. Cloetta AB | Alimak Hek vs. Dometic Group 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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