Correlation Between LIFEWAY FOODS and Freenet AG
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By analyzing existing cross correlation between LIFEWAY FOODS and freenet AG, you can compare the effects of market volatilities on LIFEWAY FOODS and Freenet AG 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 LIFEWAY FOODS with a short position of Freenet AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of LIFEWAY FOODS and Freenet AG.
Diversification Opportunities for LIFEWAY FOODS and Freenet AG
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between LIFEWAY and Freenet is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding LIFEWAY FOODS and freenet AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on freenet AG and LIFEWAY 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 LIFEWAY FOODS are associated (or correlated) with Freenet AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of freenet AG has no effect on the direction of LIFEWAY FOODS i.e., LIFEWAY FOODS and Freenet AG go up and down completely randomly.
Pair Corralation between LIFEWAY FOODS and Freenet AG
Assuming the 90 days trading horizon LIFEWAY FOODS is expected to generate 5.92 times more return on investment than Freenet AG. However, LIFEWAY FOODS is 5.92 times more volatile than freenet AG. It trades about 0.08 of its potential returns per unit of risk. freenet AG is currently generating about 0.08 per unit of risk. If you would invest 585.00 in LIFEWAY FOODS on September 4, 2024 and sell it today you would earn a total of 1,655 from holding LIFEWAY FOODS or generate 282.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
LIFEWAY FOODS vs. freenet AG
Performance |
| Timeline |
| LIFEWAY FOODS |
| freenet AG |
LIFEWAY FOODS and Freenet AG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LIFEWAY FOODS and Freenet AG
The main advantage of trading using opposite LIFEWAY FOODS and Freenet AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LIFEWAY FOODS position performs unexpectedly, Freenet AG 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 Freenet AG will offset losses from the drop in Freenet AG's long position.| LIFEWAY FOODS vs. TOTAL GABON | LIFEWAY FOODS vs. Walgreens Boots Alliance | LIFEWAY FOODS vs. Peak Resources Limited |
| Freenet AG vs. Hyster Yale Materials Handling | Freenet AG vs. Vulcan Materials | Freenet AG vs. Sumitomo Rubber Industries | Freenet AG vs. GOODYEAR T RUBBER |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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