Correlation Between Lundin Energy and Vitasoy International
Can any of the company-specific risk be diversified away by investing in both Lundin Energy and Vitasoy International 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 Lundin Energy and Vitasoy International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lundin Energy AB and Vitasoy International Holdings, you can compare the effects of market volatilities on Lundin Energy and Vitasoy International 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 Lundin Energy with a short position of Vitasoy International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lundin Energy and Vitasoy International.
Diversification Opportunities for Lundin Energy and Vitasoy International
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lundin and Vitasoy is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Lundin Energy AB and Vitasoy International Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vitasoy International and Lundin Energy 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 Lundin Energy AB are associated (or correlated) with Vitasoy International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vitasoy International has no effect on the direction of Lundin Energy i.e., Lundin Energy and Vitasoy International go up and down completely randomly.
Pair Corralation between Lundin Energy and Vitasoy International
Assuming the 90 days horizon Lundin Energy AB is expected to generate 1.27 times more return on investment than Vitasoy International. However, Lundin Energy is 1.27 times more volatile than Vitasoy International Holdings. It trades about -0.04 of its potential returns per unit of risk. Vitasoy International Holdings is currently generating about -0.05 per unit of risk. If you would invest 215.00 in Lundin Energy AB on September 5, 2024 and sell it today you would lose (155.00) from holding Lundin Energy AB or give up 72.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 66.4% |
| Values | Daily Returns |
Lundin Energy AB vs. Vitasoy International Holdings
Performance |
| Timeline |
| Lundin Energy AB |
| Vitasoy International |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Lundin Energy and Vitasoy International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lundin Energy and Vitasoy International
The main advantage of trading using opposite Lundin Energy and Vitasoy International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lundin Energy position performs unexpectedly, Vitasoy International 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 Vitasoy International will offset losses from the drop in Vitasoy International's long position.| Lundin Energy vs. Renew Energy Global | Lundin Energy vs. Energy Vault Holdings | Lundin Energy vs. Fluence Energy | Lundin Energy vs. Advent Technologies Holdings |
| Vitasoy International vs. Premier Foods Plc | Vitasoy International vs. Torque Lifestyle Brands | Vitasoy International vs. Naturally Splendid Enterprises | Vitasoy International vs. Aryzta AG PK |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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