Correlation Between Lifco AB and Troax Group
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By analyzing existing cross correlation between Lifco AB and Troax Group AB, you can compare the effects of market volatilities on Lifco AB and Troax Group 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 Troax Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lifco AB and Troax Group.
Diversification Opportunities for Lifco AB and Troax Group
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Lifco and Troax is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Lifco AB and Troax Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Troax Group 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 Troax Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Troax Group AB has no effect on the direction of Lifco AB i.e., Lifco AB and Troax Group go up and down completely randomly.
Pair Corralation between Lifco AB and Troax Group
Assuming the 90 days trading horizon Lifco AB is expected to generate 0.78 times more return on investment than Troax Group. However, Lifco AB is 1.29 times less risky than Troax Group. It trades about 0.08 of its potential returns per unit of risk. Troax Group AB is currently generating about 0.02 per unit of risk. If you would invest 17,818 in Lifco AB on August 29, 2024 and sell it today you would earn a total of 14,142 from holding Lifco AB or generate 79.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lifco AB vs. Troax Group AB
Performance |
| Timeline |
| Lifco AB |
| Troax Group AB |
Lifco AB and Troax Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lifco AB and Troax Group
The main advantage of trading using opposite Lifco AB and Troax Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lifco AB position performs unexpectedly, Troax Group 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 Troax Group will offset losses from the drop in Troax Group's long position.| Lifco AB vs. Indutrade AB | Lifco AB vs. Addtech AB | Lifco AB vs. Teqnion AB | Lifco AB vs. Vitec Software Group |
| Troax Group vs. Bufab Holding AB | Troax Group vs. Thule Group AB | Troax Group vs. Beijer Ref AB | Troax Group vs. Lifco 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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