Correlation Between Lifco AB and Redsense Medical
Specify exactly 2 symbols:
By analyzing existing cross correlation between Lifco AB and Redsense Medical AB, you can compare the effects of market volatilities on Lifco AB and Redsense Medical 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 Redsense Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lifco AB and Redsense Medical.
Diversification Opportunities for Lifco AB and Redsense Medical
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Lifco and Redsense is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Lifco AB and Redsense Medical AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Redsense Medical 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 Redsense Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Redsense Medical has no effect on the direction of Lifco AB i.e., Lifco AB and Redsense Medical go up and down completely randomly.
Pair Corralation between Lifco AB and Redsense Medical
Assuming the 90 days trading horizon Lifco AB is expected to generate 0.36 times more return on investment than Redsense Medical. However, Lifco AB is 2.75 times less risky than Redsense Medical. It trades about 0.07 of its potential returns per unit of risk. Redsense Medical AB is currently generating about 0.0 per unit of risk. If you would invest 18,748 in Lifco AB on August 26, 2024 and sell it today you would earn a total of 13,072 from holding Lifco AB or generate 69.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.4% |
| Values | Daily Returns |
Lifco AB vs. Redsense Medical AB
Performance |
| Timeline |
| Lifco AB |
| Redsense Medical |
Lifco AB and Redsense Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lifco AB and Redsense Medical
The main advantage of trading using opposite Lifco AB and Redsense Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lifco AB position performs unexpectedly, Redsense Medical 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 Redsense Medical will offset losses from the drop in Redsense Medical's long position.| Lifco AB vs. Indutrade AB | Lifco AB vs. Addtech AB | Lifco AB vs. Teqnion AB | Lifco AB vs. Vitec Software Group |
| Redsense Medical vs. Addtech AB | Redsense Medical vs. Lifco AB | Redsense Medical vs. Indutrade AB | Redsense Medical vs. Lagercrantz Group 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |