Correlation Between Lifco AB and Better Collective
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By analyzing existing cross correlation between Lifco AB and Better Collective, you can compare the effects of market volatilities on Lifco AB and Better Collective 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 Better Collective. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lifco AB and Better Collective.
Diversification Opportunities for Lifco AB and Better Collective
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Lifco and Better is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Lifco AB and Better Collective in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Better Collective 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 Better Collective. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Better Collective has no effect on the direction of Lifco AB i.e., Lifco AB and Better Collective go up and down completely randomly.
Pair Corralation between Lifco AB and Better Collective
Assuming the 90 days trading horizon Lifco AB is expected to generate 0.47 times more return on investment than Better Collective. However, Lifco AB is 2.15 times less risky than Better Collective. It trades about 0.07 of its potential returns per unit of risk. Better Collective is currently generating about -0.03 per unit of risk. If you would invest 22,752 in Lifco AB on August 31, 2024 and sell it today you would earn a total of 10,348 from holding Lifco AB or generate 45.48% 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. Better Collective
Performance |
| Timeline |
| Lifco AB |
| Better Collective |
Lifco AB and Better Collective Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lifco AB and Better Collective
The main advantage of trading using opposite Lifco AB and Better Collective positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lifco AB position performs unexpectedly, Better Collective 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 Better Collective will offset losses from the drop in Better Collective's long position.| Lifco AB vs. Indutrade AB | Lifco AB vs. Addtech AB | Lifco AB vs. Teqnion AB | Lifco AB vs. Vitec Software Group |
| Better Collective vs. Catena Media plc | Better Collective vs. Kambi Group PLC | Better Collective vs. Betsson AB | Better Collective vs. Invisio Communications 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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