Correlation Between MIPS AB and Lifco AB
Specify exactly 2 symbols:
By analyzing existing cross correlation between MIPS AB and Lifco AB, you can compare the effects of market volatilities on MIPS AB and Lifco 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 MIPS AB with a short position of Lifco AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of MIPS AB and Lifco AB.
Diversification Opportunities for MIPS AB and Lifco AB
Very weak diversification
The 3 months correlation between MIPS and Lifco is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding MIPS AB and Lifco AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lifco AB and MIPS AB 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 MIPS AB are associated (or correlated) with Lifco AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lifco AB has no effect on the direction of MIPS AB i.e., MIPS AB and Lifco AB go up and down completely randomly.
Pair Corralation between MIPS AB and Lifco AB
Assuming the 90 days trading horizon MIPS AB is expected to generate 2.21 times more return on investment than Lifco AB. However, MIPS AB is 2.21 times more volatile than Lifco AB. It trades about 0.07 of its potential returns per unit of risk. Lifco AB is currently generating about 0.12 per unit of risk. If you would invest 28,983 in MIPS AB on September 1, 2024 and sell it today you would earn a total of 19,437 from holding MIPS AB or generate 67.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MIPS AB vs. Lifco AB
Performance |
| Timeline |
| MIPS AB |
| Lifco AB |
MIPS AB and Lifco AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MIPS AB and Lifco AB
The main advantage of trading using opposite MIPS AB and Lifco AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MIPS AB position performs unexpectedly, Lifco 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 Lifco AB will offset losses from the drop in Lifco AB's long position.| MIPS AB vs. Thule Group AB | MIPS AB vs. Sinch AB | MIPS AB vs. Hexatronic Group AB | MIPS AB vs. NIBE Industrier AB |
| Lifco AB vs. Indutrade AB | Lifco AB vs. Addtech AB | Lifco AB vs. Teqnion AB | Lifco AB vs. Vitec Software Group |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |