Correlation Between Lifco AB and Terranet
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By analyzing existing cross correlation between Lifco AB and Terranet AB, you can compare the effects of market volatilities on Lifco AB and Terranet 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 Terranet. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lifco AB and Terranet.
Diversification Opportunities for Lifco AB and Terranet
Very weak diversification
The 3 months correlation between Lifco and Terranet is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Lifco AB and Terranet AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Terranet 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 Terranet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Terranet AB has no effect on the direction of Lifco AB i.e., Lifco AB and Terranet go up and down completely randomly.
Pair Corralation between Lifco AB and Terranet
Assuming the 90 days trading horizon Lifco AB is expected to generate 0.23 times more return on investment than Terranet. However, Lifco AB is 4.33 times less risky than Terranet. It trades about 0.09 of its potential returns per unit of risk. Terranet AB is currently generating about -0.01 per unit of risk. If you would invest 18,232 in Lifco AB on August 31, 2024 and sell it today you would earn a total of 14,868 from holding Lifco AB or generate 81.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lifco AB vs. Terranet AB
Performance |
| Timeline |
| Lifco AB |
| Terranet AB |
Lifco AB and Terranet Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lifco AB and Terranet
The main advantage of trading using opposite Lifco AB and Terranet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lifco AB position performs unexpectedly, Terranet 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 Terranet will offset losses from the drop in Terranet's long position.| Lifco AB vs. Indutrade AB | Lifco AB vs. Addtech AB | Lifco AB vs. Teqnion AB | Lifco AB vs. Vitec Software Group |
| Terranet vs. Catena Media plc | Terranet vs. Kambi Group PLC | Terranet vs. Betsson AB | Terranet vs. Invisio Communications 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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