Correlation Between Lifco AB and Ferronordic
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By analyzing existing cross correlation between Lifco AB and Ferronordic AB, you can compare the effects of market volatilities on Lifco AB and Ferronordic 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 Ferronordic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lifco AB and Ferronordic.
Diversification Opportunities for Lifco AB and Ferronordic
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Lifco and Ferronordic is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Lifco AB and Ferronordic AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ferronordic 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 Ferronordic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ferronordic AB has no effect on the direction of Lifco AB i.e., Lifco AB and Ferronordic go up and down completely randomly.
Pair Corralation between Lifco AB and Ferronordic
Assuming the 90 days trading horizon Lifco AB is expected to generate 1.0 times more return on investment than Ferronordic. However, Lifco AB is 1.0 times less risky than Ferronordic. It trades about 0.06 of its potential returns per unit of risk. Ferronordic AB is currently generating about -0.12 per unit of risk. If you would invest 28,200 in Lifco AB on October 13, 2024 and sell it today you would earn a total of 3,960 from holding Lifco AB or generate 14.04% 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. Ferronordic AB
Performance |
| Timeline |
| Lifco AB |
| Ferronordic AB |
Lifco AB and Ferronordic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lifco AB and Ferronordic
The main advantage of trading using opposite Lifco AB and Ferronordic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lifco AB position performs unexpectedly, Ferronordic 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 Ferronordic will offset losses from the drop in Ferronordic's long position.| Lifco AB vs. Indutrade AB | Lifco AB vs. Addtech AB | Lifco AB vs. Teqnion AB | Lifco AB vs. Vitec Software Group |
| Ferronordic vs. Indutrade AB | Ferronordic vs. Lifco AB | Ferronordic vs. Lagercrantz Group AB | Ferronordic vs. AddLife 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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