Correlation Between Lohilo Foods and Maven Wireless
Can any of the company-specific risk be diversified away by investing in both Lohilo Foods and Maven Wireless 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 Maven Wireless 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 Maven Wireless Sweden, you can compare the effects of market volatilities on Lohilo Foods and Maven Wireless 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 Maven Wireless. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lohilo Foods and Maven Wireless.
Diversification Opportunities for Lohilo Foods and Maven Wireless
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Lohilo and Maven is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Lohilo Foods AB and Maven Wireless Sweden in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maven Wireless Sweden 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 Maven Wireless. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maven Wireless Sweden has no effect on the direction of Lohilo Foods i.e., Lohilo Foods and Maven Wireless go up and down completely randomly.
Pair Corralation between Lohilo Foods and Maven Wireless
Assuming the 90 days trading horizon Lohilo Foods AB is expected to under-perform the Maven Wireless. In addition to that, Lohilo Foods is 1.9 times more volatile than Maven Wireless Sweden. It trades about -0.2 of its total potential returns per unit of risk. Maven Wireless Sweden is currently generating about -0.15 per unit of volatility. If you would invest 1,145 in Maven Wireless Sweden on August 29, 2024 and sell it today you would lose (105.00) from holding Maven Wireless Sweden or give up 9.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lohilo Foods AB vs. Maven Wireless Sweden
Performance |
| Timeline |
| Lohilo Foods AB |
| Maven Wireless Sweden |
Lohilo Foods and Maven Wireless Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lohilo Foods and Maven Wireless
The main advantage of trading using opposite Lohilo Foods and Maven Wireless positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lohilo Foods position performs unexpectedly, Maven Wireless 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 Maven Wireless will offset losses from the drop in Maven Wireless' long position.| Lohilo Foods vs. Smart Eye AB | Lohilo Foods vs. Kamux Suomi Oy | Lohilo Foods vs. Zignsec AB | Lohilo Foods vs. Harvia Oyj |
| Maven Wireless vs. Lidds AB | Maven Wireless vs. Serstech AB | Maven Wireless vs. Transtema Group AB | Maven Wireless vs. Enorama Pharma 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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