Correlation Between Lipum AB and Viaplay Group
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By analyzing existing cross correlation between Lipum AB and Viaplay Group AB, you can compare the effects of market volatilities on Lipum AB and Viaplay 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 Lipum AB with a short position of Viaplay Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lipum AB and Viaplay Group.
Diversification Opportunities for Lipum AB and Viaplay Group
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Lipum and Viaplay is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Lipum AB and Viaplay Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Viaplay Group AB and Lipum 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 Lipum AB are associated (or correlated) with Viaplay Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Viaplay Group AB has no effect on the direction of Lipum AB i.e., Lipum AB and Viaplay Group go up and down completely randomly.
Pair Corralation between Lipum AB and Viaplay Group
Assuming the 90 days trading horizon Lipum AB is expected to generate 0.41 times more return on investment than Viaplay Group. However, Lipum AB is 2.46 times less risky than Viaplay Group. It trades about 0.03 of its potential returns per unit of risk. Viaplay Group AB is currently generating about -0.04 per unit of risk. If you would invest 1,450 in Lipum AB on August 25, 2024 and sell it today you would earn a total of 220.00 from holding Lipum AB or generate 15.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lipum AB vs. Viaplay Group AB
Performance |
| Timeline |
| Lipum AB |
| Viaplay Group AB |
Lipum AB and Viaplay Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lipum AB and Viaplay Group
The main advantage of trading using opposite Lipum AB and Viaplay Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lipum AB position performs unexpectedly, Viaplay 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 Viaplay Group will offset losses from the drop in Viaplay Group's long position.The idea behind Lipum AB and Viaplay Group AB pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Viaplay Group vs. Truecaller AB | Viaplay Group vs. Modern Times Group | Viaplay Group vs. Millicom International Cellular | Viaplay Group vs. Tele2 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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