Correlation Between NIBE Industrier and Lagercrantz Group
Can any of the company-specific risk be diversified away by investing in both NIBE Industrier and Lagercrantz Group 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 NIBE Industrier and Lagercrantz Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NIBE Industrier AB and Lagercrantz Group AB, you can compare the effects of market volatilities on NIBE Industrier and Lagercrantz Group 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 NIBE Industrier with a short position of Lagercrantz Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of NIBE Industrier and Lagercrantz Group.
Diversification Opportunities for NIBE Industrier and Lagercrantz Group
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between NIBE and Lagercrantz is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding NIBE Industrier AB and Lagercrantz Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lagercrantz Group and NIBE Industrier 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 NIBE Industrier AB are associated (or correlated) with Lagercrantz Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lagercrantz Group has no effect on the direction of NIBE Industrier i.e., NIBE Industrier and Lagercrantz Group go up and down completely randomly.
Pair Corralation between NIBE Industrier and Lagercrantz Group
Assuming the 90 days trading horizon NIBE Industrier is expected to generate 2.48 times less return on investment than Lagercrantz Group. In addition to that, NIBE Industrier is 1.01 times more volatile than Lagercrantz Group AB. It trades about 0.1 of its total potential returns per unit of risk. Lagercrantz Group AB is currently generating about 0.24 per unit of volatility. If you would invest 21,140 in Lagercrantz Group AB on November 5, 2024 and sell it today you would earn a total of 2,460 from holding Lagercrantz Group AB or generate 11.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NIBE Industrier AB vs. Lagercrantz Group AB
Performance |
| Timeline |
| NIBE Industrier AB |
| Lagercrantz Group |
NIBE Industrier and Lagercrantz Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NIBE Industrier and Lagercrantz Group
The main advantage of trading using opposite NIBE Industrier and Lagercrantz Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NIBE Industrier position performs unexpectedly, Lagercrantz Group 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 Lagercrantz Group will offset losses from the drop in Lagercrantz Group's long position.| NIBE Industrier vs. Hexagon AB | NIBE Industrier vs. Investor AB ser | NIBE Industrier vs. Investment AB Latour | NIBE Industrier vs. ASSA ABLOY AB |
| Lagercrantz Group vs. Addtech AB | Lagercrantz Group vs. Lifco AB | Lagercrantz Group vs. Indutrade AB | Lagercrantz Group 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |