Correlation Between Lifco AB and Eolus Vind
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By analyzing existing cross correlation between Lifco AB and Eolus Vind AB, you can compare the effects of market volatilities on Lifco AB and Eolus Vind 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 Eolus Vind. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lifco AB and Eolus Vind.
Diversification Opportunities for Lifco AB and Eolus Vind
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Lifco and Eolus is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Lifco AB and Eolus Vind AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eolus Vind 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 Eolus Vind. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eolus Vind AB has no effect on the direction of Lifco AB i.e., Lifco AB and Eolus Vind go up and down completely randomly.
Pair Corralation between Lifco AB and Eolus Vind
Assuming the 90 days trading horizon Lifco AB is expected to generate 0.43 times more return on investment than Eolus Vind. However, Lifco AB is 2.32 times less risky than Eolus Vind. It trades about -0.08 of its potential returns per unit of risk. Eolus Vind AB is currently generating about -0.06 per unit of risk. If you would invest 32,800 in Lifco AB on August 29, 2024 and sell it today you would lose (840.00) from holding Lifco AB or give up 2.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lifco AB vs. Eolus Vind AB
Performance |
| Timeline |
| Lifco AB |
| Eolus Vind AB |
Lifco AB and Eolus Vind Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lifco AB and Eolus Vind
The main advantage of trading using opposite Lifco AB and Eolus Vind positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lifco AB position performs unexpectedly, Eolus Vind 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 Eolus Vind will offset losses from the drop in Eolus Vind's long position.| Lifco AB vs. Indutrade AB | Lifco AB vs. Addtech AB | Lifco AB vs. Teqnion AB | Lifco AB vs. Vitec Software Group |
| Eolus Vind vs. NOTE AB | Eolus Vind vs. Zaptec AS | Eolus Vind vs. SolTech Energy Sweden | Eolus Vind vs. Scatec Solar OL |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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