Correlation Between Lifco AB and SBB-B
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By analyzing existing cross correlation between Lifco AB and Samhllsbyggnadsbolaget i Norden, you can compare the effects of market volatilities on Lifco AB and SBB-B 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 SBB-B. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lifco AB and SBB-B.
Diversification Opportunities for Lifco AB and SBB-B
Poor diversification
The 3 months correlation between Lifco and SBB-B is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Lifco AB and Samhllsbyggnadsbolaget i Norde in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samhllsbyggnadsbolaget 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 SBB-B. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samhllsbyggnadsbolaget has no effect on the direction of Lifco AB i.e., Lifco AB and SBB-B go up and down completely randomly.
Pair Corralation between Lifco AB and SBB-B
Assuming the 90 days trading horizon Lifco AB is expected to generate 0.26 times more return on investment than SBB-B. However, Lifco AB is 3.92 times less risky than SBB-B. It trades about -0.04 of its potential returns per unit of risk. Samhllsbyggnadsbolaget i Norden is currently generating about -0.23 per unit of risk. If you would invest 32,600 in Lifco AB on August 30, 2024 and sell it today you would lose (500.00) from holding Lifco AB or give up 1.53% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Lifco AB vs. Samhllsbyggnadsbolaget i Norde
Performance |
| Timeline |
| Lifco AB |
| Samhllsbyggnadsbolaget |
Lifco AB and SBB-B Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lifco AB and SBB-B
The main advantage of trading using opposite Lifco AB and SBB-B positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lifco AB position performs unexpectedly, SBB-B 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 SBB-B will offset losses from the drop in SBB-B's long position.| Lifco AB vs. Indutrade AB | Lifco AB vs. Addtech AB | Lifco AB vs. Teqnion AB | Lifco AB vs. Vitec Software Group |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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