Correlation Between Lohilo Foods and Clemondo Group
Can any of the company-specific risk be diversified away by investing in both Lohilo Foods and Clemondo Group 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 Lohilo Foods and Clemondo Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lohilo Foods AB and Clemondo Group AB, you can compare the effects of market volatilities on Lohilo Foods and Clemondo 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 Lohilo Foods with a short position of Clemondo Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lohilo Foods and Clemondo Group.
Diversification Opportunities for Lohilo Foods and Clemondo Group
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Lohilo and Clemondo is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Lohilo Foods AB and Clemondo Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clemondo Group AB and Lohilo Foods 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 Lohilo Foods AB are associated (or correlated) with Clemondo Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clemondo Group AB has no effect on the direction of Lohilo Foods i.e., Lohilo Foods and Clemondo Group go up and down completely randomly.
Pair Corralation between Lohilo Foods and Clemondo Group
Assuming the 90 days trading horizon Lohilo Foods AB is expected to under-perform the Clemondo Group. In addition to that, Lohilo Foods is 2.29 times more volatile than Clemondo Group AB. It trades about -0.17 of its total potential returns per unit of risk. Clemondo Group AB is currently generating about -0.04 per unit of volatility. If you would invest 78.00 in Clemondo Group AB on August 29, 2024 and sell it today you would lose (2.00) from holding Clemondo Group AB or give up 2.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lohilo Foods AB vs. Clemondo Group AB
Performance |
| Timeline |
| Lohilo Foods AB |
| Clemondo Group AB |
Lohilo Foods and Clemondo Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lohilo Foods and Clemondo Group
The main advantage of trading using opposite Lohilo Foods and Clemondo Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lohilo Foods position performs unexpectedly, Clemondo 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 Clemondo Group will offset losses from the drop in Clemondo Group's long position.| Lohilo Foods vs. Smart Eye AB | Lohilo Foods vs. Kamux Suomi Oy | Lohilo Foods vs. Zignsec AB | Lohilo Foods vs. Harvia Oyj |
| Clemondo Group vs. Kancera AB | Clemondo Group vs. Acarix AS | Clemondo Group vs. Bambuser AB | Clemondo Group vs. Spectrumone publ 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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