Correlation Between Lifco AB and Investment
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By analyzing existing cross correlation between Lifco AB and Investment AB Latour, you can compare the effects of market volatilities on Lifco AB and Investment 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 Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lifco AB and Investment.
Diversification Opportunities for Lifco AB and Investment
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Lifco and Investment is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Lifco AB and Investment AB Latour in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Investment AB Latour 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 Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Investment AB Latour has no effect on the direction of Lifco AB i.e., Lifco AB and Investment go up and down completely randomly.
Pair Corralation between Lifco AB and Investment
Assuming the 90 days trading horizon Lifco AB is expected to generate 1.05 times more return on investment than Investment. However, Lifco AB is 1.05 times more volatile than Investment AB Latour. It trades about 0.08 of its potential returns per unit of risk. Investment AB Latour is currently generating about -0.06 per unit of risk. If you would invest 32,800 in Lifco AB on October 26, 2024 and sell it today you would earn a total of 2,140 from holding Lifco AB or generate 6.52% 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. Investment AB Latour
Performance |
| Timeline |
| Lifco AB |
| Investment AB Latour |
Lifco AB and Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lifco AB and Investment
The main advantage of trading using opposite Lifco AB and Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lifco AB position performs unexpectedly, Investment 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 Investment will offset losses from the drop in Investment's long position.| Lifco AB vs. Indutrade AB | Lifco AB vs. Addtech AB | Lifco AB vs. Teqnion AB | Lifco AB vs. Vitec Software Group |
| Investment vs. Kinnevik Investment AB | Investment vs. Investor AB ser | Investment vs. L E Lundbergfretagen | Investment vs. Industrivarden AB ser |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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