Correlation Between Lifco AB and Instalco Intressenter
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By analyzing existing cross correlation between Lifco AB and Instalco Intressenter AB, you can compare the effects of market volatilities on Lifco AB and Instalco Intressenter 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 Instalco Intressenter. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lifco AB and Instalco Intressenter.
Diversification Opportunities for Lifco AB and Instalco Intressenter
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Lifco and Instalco is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Lifco AB and Instalco Intressenter AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Instalco Intressenter 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 Instalco Intressenter. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Instalco Intressenter has no effect on the direction of Lifco AB i.e., Lifco AB and Instalco Intressenter go up and down completely randomly.
Pair Corralation between Lifco AB and Instalco Intressenter
Assuming the 90 days trading horizon Lifco AB is expected to generate 0.71 times more return on investment than Instalco Intressenter. However, Lifco AB is 1.42 times less risky than Instalco Intressenter. It trades about 0.31 of its potential returns per unit of risk. Instalco Intressenter AB is currently generating about -0.09 per unit of risk. If you would invest 32,660 in Lifco AB on November 3, 2024 and sell it today you would earn a total of 3,840 from holding Lifco AB or generate 11.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lifco AB vs. Instalco Intressenter AB
Performance |
| Timeline |
| Lifco AB |
| Instalco Intressenter |
Lifco AB and Instalco Intressenter Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lifco AB and Instalco Intressenter
The main advantage of trading using opposite Lifco AB and Instalco Intressenter positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lifco AB position performs unexpectedly, Instalco Intressenter 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 Instalco Intressenter will offset losses from the drop in Instalco Intressenter's long position.| Lifco AB vs. Indutrade AB | Lifco AB vs. Addtech AB | Lifco AB vs. Teqnion AB | Lifco AB vs. Vitec Software Group |
| Instalco Intressenter vs. Lifco AB | Instalco Intressenter vs. Sdiptech AB | Instalco Intressenter vs. Vitec Software Group | Instalco Intressenter vs. Addtech 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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