Correlation Between London Security and Kinnevik Investment
Can any of the company-specific risk be diversified away by investing in both London Security and Kinnevik Investment 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 London Security and Kinnevik Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between London Security Plc and Kinnevik Investment AB, you can compare the effects of market volatilities on London Security and Kinnevik Investment 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 London Security with a short position of Kinnevik Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of London Security and Kinnevik Investment.
Diversification Opportunities for London Security and Kinnevik Investment
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between London and Kinnevik is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding London Security Plc and Kinnevik Investment AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kinnevik Investment and London Security 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 London Security Plc are associated (or correlated) with Kinnevik Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kinnevik Investment has no effect on the direction of London Security i.e., London Security and Kinnevik Investment go up and down completely randomly.
Pair Corralation between London Security and Kinnevik Investment
If you would invest 340,000 in London Security Plc on October 16, 2024 and sell it today you would earn a total of 0.00 from holding London Security Plc or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.74% |
| Values | Daily Returns |
London Security Plc vs. Kinnevik Investment AB
Performance |
| Timeline |
| London Security Plc |
| Kinnevik Investment |
London Security and Kinnevik Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with London Security and Kinnevik Investment
The main advantage of trading using opposite London Security and Kinnevik Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if London Security position performs unexpectedly, Kinnevik Investment 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 Kinnevik Investment will offset losses from the drop in Kinnevik Investment's long position.| London Security vs. Accesso Technology Group | London Security vs. Software Circle plc | London Security vs. Zoom Video Communications | London Security vs. Polar Capital Technology |
| Kinnevik Investment vs. Anglo Asian Mining | Kinnevik Investment vs. Ecclesiastical Insurance Office | Kinnevik Investment vs. CAP LEASE AVIATION | Kinnevik Investment vs. iShares Physical Silver |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |