Correlation Between Lifco AB and Crunchfish
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By analyzing existing cross correlation between Lifco AB and Crunchfish AB, you can compare the effects of market volatilities on Lifco AB and Crunchfish 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 Crunchfish. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lifco AB and Crunchfish.
Diversification Opportunities for Lifco AB and Crunchfish
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Lifco and Crunchfish is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Lifco AB and Crunchfish AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Crunchfish 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 Crunchfish. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Crunchfish AB has no effect on the direction of Lifco AB i.e., Lifco AB and Crunchfish go up and down completely randomly.
Pair Corralation between Lifco AB and Crunchfish
Assuming the 90 days trading horizon Lifco AB is expected to generate 0.17 times more return on investment than Crunchfish. However, Lifco AB is 6.0 times less risky than Crunchfish. It trades about 0.13 of its potential returns per unit of risk. Crunchfish AB is currently generating about -0.03 per unit of risk. If you would invest 18,733 in Lifco AB on August 29, 2024 and sell it today you would earn a total of 13,367 from holding Lifco AB or generate 71.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lifco AB vs. Crunchfish AB
Performance |
| Timeline |
| Lifco AB |
| Crunchfish AB |
Lifco AB and Crunchfish Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lifco AB and Crunchfish
The main advantage of trading using opposite Lifco AB and Crunchfish positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lifco AB position performs unexpectedly, Crunchfish 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 Crunchfish will offset losses from the drop in Crunchfish's long position.| Lifco AB vs. Indutrade AB | Lifco AB vs. Addtech AB | Lifco AB vs. Teqnion AB | Lifco AB vs. Vitec Software Group |
| Crunchfish vs. Bambuser AB | Crunchfish vs. Maha Energy AB | Crunchfish vs. Cantargia AB | Crunchfish vs. Minesto 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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