Correlation Between Maven Wireless and Lohilo Foods
Can any of the company-specific risk be diversified away by investing in both Maven Wireless and Lohilo Foods 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 Maven Wireless and Lohilo Foods into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Maven Wireless Sweden and Lohilo Foods AB, you can compare the effects of market volatilities on Maven Wireless and Lohilo Foods 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 Maven Wireless with a short position of Lohilo Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maven Wireless and Lohilo Foods.
Diversification Opportunities for Maven Wireless and Lohilo Foods
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Maven and Lohilo is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Maven Wireless Sweden and Lohilo Foods AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lohilo Foods AB and Maven Wireless 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 Maven Wireless Sweden are associated (or correlated) with Lohilo Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lohilo Foods AB has no effect on the direction of Maven Wireless i.e., Maven Wireless and Lohilo Foods go up and down completely randomly.
Pair Corralation between Maven Wireless and Lohilo Foods
Assuming the 90 days trading horizon Maven Wireless Sweden is expected to generate 0.55 times more return on investment than Lohilo Foods. However, Maven Wireless Sweden is 1.81 times less risky than Lohilo Foods. It trades about -0.15 of its potential returns per unit of risk. Lohilo Foods AB is currently generating about -0.14 per unit of risk. If you would invest 1,190 in Maven Wireless Sweden on August 25, 2024 and sell it today you would lose (115.00) from holding Maven Wireless Sweden or give up 9.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Maven Wireless Sweden vs. Lohilo Foods AB
Performance |
| Timeline |
| Maven Wireless Sweden |
| Lohilo Foods AB |
Maven Wireless and Lohilo Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maven Wireless and Lohilo Foods
The main advantage of trading using opposite Maven Wireless and Lohilo Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maven Wireless position performs unexpectedly, Lohilo Foods 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 Lohilo Foods will offset losses from the drop in Lohilo Foods' long position.| Maven Wireless vs. Lidds AB | Maven Wireless vs. Serstech AB | Maven Wireless vs. Transtema Group AB | Maven Wireless vs. Enorama Pharma AB |
| Lohilo Foods vs. Smart Eye AB | Lohilo Foods vs. Kamux Suomi Oy | Lohilo Foods vs. Zignsec AB | Lohilo Foods vs. Harvia Oyj |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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