Correlation Between Lifco AB and Lime Technologies
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By analyzing existing cross correlation between Lifco AB and Lime Technologies AB, you can compare the effects of market volatilities on Lifco AB and Lime Technologies 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 Lime Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lifco AB and Lime Technologies.
Diversification Opportunities for Lifco AB and Lime Technologies
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Lifco and Lime is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Lifco AB and Lime Technologies AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lime Technologies 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 Lime Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lime Technologies has no effect on the direction of Lifco AB i.e., Lifco AB and Lime Technologies go up and down completely randomly.
Pair Corralation between Lifco AB and Lime Technologies
Assuming the 90 days trading horizon Lifco AB is expected to generate 0.71 times more return on investment than Lime Technologies. However, Lifco AB is 1.4 times less risky than Lime Technologies. It trades about 0.07 of its potential returns per unit of risk. Lime Technologies AB is currently generating about -0.04 per unit of risk. If you would invest 31,060 in Lifco AB on August 25, 2024 and sell it today you would earn a total of 760.00 from holding Lifco AB or generate 2.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lifco AB vs. Lime Technologies AB
Performance |
| Timeline |
| Lifco AB |
| Lime Technologies |
Lifco AB and Lime Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lifco AB and Lime Technologies
The main advantage of trading using opposite Lifco AB and Lime Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lifco AB position performs unexpectedly, Lime Technologies 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 Lime Technologies will offset losses from the drop in Lime Technologies' long position.| Lifco AB vs. Indutrade AB | Lifco AB vs. Addtech AB | Lifco AB vs. Teqnion AB | Lifco AB vs. Vitec Software Group |
| Lime Technologies vs. Lifco AB | Lime Technologies vs. Lagercrantz Group AB | Lime Technologies vs. Addtech AB | Lime Technologies vs. Instalco Intressenter 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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