Correlation Between Lifco AB and Momentum Group
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By analyzing existing cross correlation between Lifco AB and Momentum Group AB, you can compare the effects of market volatilities on Lifco AB and Momentum Group 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 Momentum Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lifco AB and Momentum Group.
Diversification Opportunities for Lifco AB and Momentum Group
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Lifco and Momentum is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Lifco AB and Momentum Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Momentum Group 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 Momentum Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Momentum Group AB has no effect on the direction of Lifco AB i.e., Lifco AB and Momentum Group go up and down completely randomly.
Pair Corralation between Lifco AB and Momentum Group
Assuming the 90 days trading horizon Lifco AB is expected to generate 0.93 times more return on investment than Momentum Group. However, Lifco AB is 1.08 times less risky than Momentum Group. It trades about -0.1 of its potential returns per unit of risk. Momentum Group AB is currently generating about -0.15 per unit of risk. If you would invest 32,800 in Lifco AB on August 28, 2024 and sell it today you would lose (1,040) from holding Lifco AB or give up 3.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lifco AB vs. Momentum Group AB
Performance |
| Timeline |
| Lifco AB |
| Momentum Group AB |
Lifco AB and Momentum Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lifco AB and Momentum Group
The main advantage of trading using opposite Lifco AB and Momentum Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lifco AB position performs unexpectedly, Momentum Group 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 Momentum Group will offset losses from the drop in Momentum Group's long position.| Lifco AB vs. Addtech AB | Lifco AB vs. Teqnion AB | Lifco AB vs. Vitec Software Group | Lifco AB vs. Lagercrantz Group AB |
| Momentum Group vs. Indutrade AB | Momentum Group vs. Lifco AB | Momentum Group vs. Lagercrantz Group AB | Momentum Group 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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