Correlation Between Liontrust Asset and Kinnevik Investment
Can any of the company-specific risk be diversified away by investing in both Liontrust Asset and Kinnevik Investment at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Liontrust Asset and Kinnevik Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Liontrust Asset Management and Kinnevik Investment AB, you can compare the effects of market volatilities on Liontrust Asset and Kinnevik Investment 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 Liontrust Asset with a short position of Kinnevik Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Liontrust Asset and Kinnevik Investment.
Diversification Opportunities for Liontrust Asset and Kinnevik Investment
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Liontrust and Kinnevik is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Liontrust Asset Management and Kinnevik Investment AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kinnevik Investment and Liontrust Asset 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 Liontrust Asset Management are associated (or correlated) with Kinnevik Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kinnevik Investment has no effect on the direction of Liontrust Asset i.e., Liontrust Asset and Kinnevik Investment go up and down completely randomly.
Pair Corralation between Liontrust Asset and Kinnevik Investment
Assuming the 90 days trading horizon Liontrust Asset Management is expected to generate 1.82 times more return on investment than Kinnevik Investment. However, Liontrust Asset is 1.82 times more volatile than Kinnevik Investment AB. It trades about 0.37 of its potential returns per unit of risk. Kinnevik Investment AB is currently generating about 0.28 per unit of risk. If you would invest 39,818 in Liontrust Asset Management on September 13, 2024 and sell it today you would earn a total of 8,882 from holding Liontrust Asset Management or generate 22.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Liontrust Asset Management vs. Kinnevik Investment AB
Performance |
| Timeline |
| Liontrust Asset Mana |
| Kinnevik Investment |
Liontrust Asset and Kinnevik Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Liontrust Asset and Kinnevik Investment
The main advantage of trading using opposite Liontrust Asset and Kinnevik Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Liontrust Asset position performs unexpectedly, Kinnevik Investment 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 Kinnevik Investment will offset losses from the drop in Kinnevik Investment's long position.| Liontrust Asset vs. Catalyst Media Group | Liontrust Asset vs. CATLIN GROUP | Liontrust Asset vs. Tamburi Investment Partners | Liontrust Asset vs. Magnora ASA |
| Kinnevik Investment vs. Caledonia Mining | Kinnevik Investment vs. Lundin Mining Corp | Kinnevik Investment vs. Coeur Mining | Kinnevik Investment vs. Universal Music 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |