Correlation Between Lifco AB and Zaplox AB
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By analyzing existing cross correlation between Lifco AB and Zaplox AB, you can compare the effects of market volatilities on Lifco AB and Zaplox AB 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 Zaplox AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lifco AB and Zaplox AB.
Diversification Opportunities for Lifco AB and Zaplox AB
Very weak diversification
The 3 months correlation between Lifco and Zaplox is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Lifco AB and Zaplox AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zaplox 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 Zaplox AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zaplox AB has no effect on the direction of Lifco AB i.e., Lifco AB and Zaplox AB go up and down completely randomly.
Pair Corralation between Lifco AB and Zaplox AB
Assuming the 90 days trading horizon Lifco AB is expected to generate 0.37 times more return on investment than Zaplox AB. However, Lifco AB is 2.67 times less risky than Zaplox AB. It trades about -0.08 of its potential returns per unit of risk. Zaplox AB is currently generating about -0.39 per unit of risk. If you would invest 32,800 in Lifco AB on August 29, 2024 and sell it today you would lose (840.00) from holding Lifco AB or give up 2.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lifco AB vs. Zaplox AB
Performance |
| Timeline |
| Lifco AB |
| Zaplox AB |
Lifco AB and Zaplox AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lifco AB and Zaplox AB
The main advantage of trading using opposite Lifco AB and Zaplox AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lifco AB position performs unexpectedly, Zaplox AB 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 Zaplox AB will offset losses from the drop in Zaplox AB's long position.| Lifco AB vs. Indutrade AB | Lifco AB vs. Addtech AB | Lifco AB vs. Teqnion AB | Lifco AB vs. Vitec Software Group |
| Zaplox AB vs. Enersize Oy | Zaplox AB vs. XMReality AB | Zaplox AB vs. Sprint Bioscience AB | Zaplox AB vs. SECITS Holding 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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