Correlation Between Lime Technologies and Lifco AB
Specify exactly 2 symbols:
By analyzing existing cross correlation between Lime Technologies AB and Lifco AB, you can compare the effects of market volatilities on Lime Technologies and Lifco 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 Lime Technologies with a short position of Lifco AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lime Technologies and Lifco AB.
Diversification Opportunities for Lime Technologies and Lifco AB
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Lime and Lifco is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Lime Technologies AB and Lifco AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lifco AB and Lime Technologies 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 Lime Technologies AB are associated (or correlated) with Lifco AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lifco AB has no effect on the direction of Lime Technologies i.e., Lime Technologies and Lifco AB go up and down completely randomly.
Pair Corralation between Lime Technologies and Lifco AB
Assuming the 90 days trading horizon Lime Technologies AB is expected to under-perform the Lifco AB. In addition to that, Lime Technologies is 1.4 times more volatile than Lifco AB. It trades about -0.04 of its total potential returns per unit of risk. Lifco AB is currently generating about 0.07 per unit of volatility. If you would invest 31,060 in Lifco AB on August 25, 2024 and sell it today you would earn a total of 760.00 from holding Lifco AB or generate 2.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lime Technologies AB vs. Lifco AB
Performance |
| Timeline |
| Lime Technologies |
| Lifco AB |
Lime Technologies and Lifco AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lime Technologies and Lifco AB
The main advantage of trading using opposite Lime Technologies and Lifco AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lime Technologies position performs unexpectedly, Lifco 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 Lifco AB will offset losses from the drop in Lifco AB's long position.| Lime Technologies vs. Lifco AB | Lime Technologies vs. Lagercrantz Group AB | Lime Technologies vs. Addtech AB | Lime Technologies vs. Instalco Intressenter AB |
| Lifco AB vs. Indutrade AB | Lifco AB vs. Addtech AB | Lifco AB vs. Teqnion AB | Lifco AB vs. Vitec Software Group |
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.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |