Correlation Between Lifco AB and Skandinaviska Enskilda
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By analyzing existing cross correlation between Lifco AB and Skandinaviska Enskilda Banken, you can compare the effects of market volatilities on Lifco AB and Skandinaviska Enskilda 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 Skandinaviska Enskilda. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lifco AB and Skandinaviska Enskilda.
Diversification Opportunities for Lifco AB and Skandinaviska Enskilda
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Lifco and Skandinaviska is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Lifco AB and Skandinaviska Enskilda Banken in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Skandinaviska Enskilda 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 Skandinaviska Enskilda. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Skandinaviska Enskilda has no effect on the direction of Lifco AB i.e., Lifco AB and Skandinaviska Enskilda go up and down completely randomly.
Pair Corralation between Lifco AB and Skandinaviska Enskilda
Assuming the 90 days trading horizon Lifco AB is expected to generate 1.48 times more return on investment than Skandinaviska Enskilda. However, Lifco AB is 1.48 times more volatile than Skandinaviska Enskilda Banken. It trades about 0.15 of its potential returns per unit of risk. Skandinaviska Enskilda Banken is currently generating about 0.09 per unit of risk. If you would invest 32,400 in Lifco AB on September 13, 2024 and sell it today you would earn a total of 1,340 from holding Lifco AB or generate 4.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lifco AB vs. Skandinaviska Enskilda Banken
Performance |
| Timeline |
| Lifco AB |
| Skandinaviska Enskilda |
Lifco AB and Skandinaviska Enskilda Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lifco AB and Skandinaviska Enskilda
The main advantage of trading using opposite Lifco AB and Skandinaviska Enskilda positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lifco AB position performs unexpectedly, Skandinaviska Enskilda 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 Skandinaviska Enskilda will offset losses from the drop in Skandinaviska Enskilda's long position.| Lifco AB vs. Indutrade AB | Lifco AB vs. Addtech AB | Lifco AB vs. Teqnion AB | Lifco AB vs. Vitec Software Group |
| Skandinaviska Enskilda vs. MTI Investment SE | Skandinaviska Enskilda vs. Beowulf Mining PLC | Skandinaviska Enskilda vs. Qleanair Holding AB | Skandinaviska Enskilda vs. Indutrade 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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