Correlation Between Lohilo Foods and Essity AB
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By analyzing existing cross correlation between Lohilo Foods AB and Essity AB, you can compare the effects of market volatilities on Lohilo Foods and Essity AB 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 Essity AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lohilo Foods and Essity AB.
Diversification Opportunities for Lohilo Foods and Essity AB
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Lohilo and Essity is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Lohilo Foods AB and Essity AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Essity 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 Essity AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Essity AB has no effect on the direction of Lohilo Foods i.e., Lohilo Foods and Essity AB go up and down completely randomly.
Pair Corralation between Lohilo Foods and Essity AB
Assuming the 90 days trading horizon Lohilo Foods AB is expected to generate 4.23 times more return on investment than Essity AB. However, Lohilo Foods is 4.23 times more volatile than Essity AB. It trades about 0.03 of its potential returns per unit of risk. Essity AB is currently generating about 0.04 per unit of risk. If you would invest 149.00 in Lohilo Foods AB on August 26, 2024 and sell it today you would earn a total of 9.00 from holding Lohilo Foods AB or generate 6.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lohilo Foods AB vs. Essity AB
Performance |
| Timeline |
| Lohilo Foods AB |
| Essity AB |
Lohilo Foods and Essity AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lohilo Foods and Essity AB
The main advantage of trading using opposite Lohilo Foods and Essity AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lohilo Foods position performs unexpectedly, Essity AB 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 Essity AB will offset losses from the drop in Essity AB'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 |
| Essity AB vs. Mendus AB | Essity AB vs. JonDeTech Sensors | Essity AB vs. Nexam Chemical Holding | Essity AB vs. Lohilo Foods 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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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