Correlation Between Lifco AB and Beijer Ref
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By analyzing existing cross correlation between Lifco AB and Beijer Ref AB, you can compare the effects of market volatilities on Lifco AB and Beijer Ref 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 Beijer Ref. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lifco AB and Beijer Ref.
Diversification Opportunities for Lifco AB and Beijer Ref
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Lifco and Beijer is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Lifco AB and Beijer Ref AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijer Ref AB 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 Beijer Ref. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijer Ref AB has no effect on the direction of Lifco AB i.e., Lifco AB and Beijer Ref go up and down completely randomly.
Pair Corralation between Lifco AB and Beijer Ref
Assuming the 90 days trading horizon Lifco AB is expected to generate 1.13 times more return on investment than Beijer Ref. However, Lifco AB is 1.13 times more volatile than Beijer Ref AB. It trades about 0.28 of its potential returns per unit of risk. Beijer Ref AB is currently generating about 0.12 per unit of risk. If you would invest 33,420 in Lifco AB on November 5, 2024 and sell it today you would earn a total of 3,080 from holding Lifco AB or generate 9.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lifco AB vs. Beijer Ref AB
Performance |
| Timeline |
| Lifco AB |
| Beijer Ref AB |
Lifco AB and Beijer Ref Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lifco AB and Beijer Ref
The main advantage of trading using opposite Lifco AB and Beijer Ref positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lifco AB position performs unexpectedly, Beijer Ref 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 Beijer Ref will offset losses from the drop in Beijer Ref's long position.| Lifco AB vs. Indutrade AB | Lifco AB vs. Addtech AB | Lifco AB vs. Teqnion AB | Lifco AB vs. Vitec Software Group |
| Beijer Ref vs. Addtech AB | Beijer Ref vs. Indutrade AB | Beijer Ref vs. Lifco AB | Beijer Ref vs. NIBE Industrier 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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