Correlation Between Lifco AB and Train Alliance
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By analyzing existing cross correlation between Lifco AB and Train Alliance Sweden, you can compare the effects of market volatilities on Lifco AB and Train Alliance 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 Train Alliance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lifco AB and Train Alliance.
Diversification Opportunities for Lifco AB and Train Alliance
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lifco and Train is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Lifco AB and Train Alliance Sweden in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Train Alliance Sweden 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 Train Alliance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Train Alliance Sweden has no effect on the direction of Lifco AB i.e., Lifco AB and Train Alliance go up and down completely randomly.
Pair Corralation between Lifco AB and Train Alliance
Assuming the 90 days trading horizon Lifco AB is expected to under-perform the Train Alliance. But the stock apears to be less risky and, when comparing its historical volatility, Lifco AB is 1.51 times less risky than Train Alliance. The stock trades about -0.2 of its potential returns per unit of risk. The Train Alliance Sweden is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 1,825 in Train Alliance Sweden on October 9, 2024 and sell it today you would earn a total of 0.00 from holding Train Alliance Sweden or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lifco AB vs. Train Alliance Sweden
Performance |
| Timeline |
| Lifco AB |
| Train Alliance Sweden |
Lifco AB and Train Alliance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lifco AB and Train Alliance
The main advantage of trading using opposite Lifco AB and Train Alliance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lifco AB position performs unexpectedly, Train Alliance 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 Train Alliance will offset losses from the drop in Train Alliance's long position.| Lifco AB vs. Indutrade AB | Lifco AB vs. Addtech AB | Lifco AB vs. Teqnion AB | Lifco AB vs. Vitec Software Group |
| Train Alliance vs. Bergman Beving AB | Train Alliance vs. FM Mattsson Mora | Train Alliance vs. Systemair AB | Train Alliance vs. Rejlers 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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