Correlation Between Logistea and FM Mattsson
Can any of the company-specific risk be diversified away by investing in both Logistea and FM Mattsson 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 Logistea and FM Mattsson into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Logistea AB Series and FM Mattsson Mora, you can compare the effects of market volatilities on Logistea and FM Mattsson 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 Logistea with a short position of FM Mattsson. Check out your portfolio center. Please also check ongoing floating volatility patterns of Logistea and FM Mattsson.
Diversification Opportunities for Logistea and FM Mattsson
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Logistea and FMM-B is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Logistea AB Series and FM Mattsson Mora in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FM Mattsson Mora and Logistea 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 Logistea AB Series are associated (or correlated) with FM Mattsson. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FM Mattsson Mora has no effect on the direction of Logistea i.e., Logistea and FM Mattsson go up and down completely randomly.
Pair Corralation between Logistea and FM Mattsson
Assuming the 90 days trading horizon Logistea AB Series is expected to generate 1.33 times more return on investment than FM Mattsson. However, Logistea is 1.33 times more volatile than FM Mattsson Mora. It trades about 0.03 of its potential returns per unit of risk. FM Mattsson Mora is currently generating about 0.02 per unit of risk. If you would invest 1,488 in Logistea AB Series on September 1, 2024 and sell it today you would earn a total of 108.00 from holding Logistea AB Series or generate 7.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Logistea AB Series vs. FM Mattsson Mora
Performance |
| Timeline |
| Logistea AB Series |
| FM Mattsson Mora |
Logistea and FM Mattsson Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Logistea and FM Mattsson
The main advantage of trading using opposite Logistea and FM Mattsson positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Logistea position performs unexpectedly, FM Mattsson 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 FM Mattsson will offset losses from the drop in FM Mattsson's long position.| Logistea vs. Logistea A | Logistea vs. KlaraBo Sverige AB | Logistea vs. Hexatronic Group AB | Logistea vs. K Fast Holding AB |
| FM Mattsson vs. Nordic Waterproofing Holding | FM Mattsson vs. Bufab Holding AB | FM Mattsson vs. Garo AB | FM Mattsson vs. Inwido 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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