Correlation Between Qleanair Holding and Lipum AB
Can any of the company-specific risk be diversified away by investing in both Qleanair Holding and Lipum AB 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 Qleanair Holding and Lipum AB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Qleanair Holding AB and Lipum AB, you can compare the effects of market volatilities on Qleanair Holding and Lipum 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 Qleanair Holding with a short position of Lipum AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qleanair Holding and Lipum AB.
Diversification Opportunities for Qleanair Holding and Lipum AB
-0.87 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Qleanair and Lipum is -0.87. Overlapping area represents the amount of risk that can be diversified away by holding Qleanair Holding AB and Lipum AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lipum AB and Qleanair Holding 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 Qleanair Holding AB are associated (or correlated) with Lipum AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lipum AB has no effect on the direction of Qleanair Holding i.e., Qleanair Holding and Lipum AB go up and down completely randomly.
Pair Corralation between Qleanair Holding and Lipum AB
Assuming the 90 days trading horizon Qleanair Holding AB is expected to under-perform the Lipum AB. In addition to that, Qleanair Holding is 1.06 times more volatile than Lipum AB. It trades about -0.35 of its total potential returns per unit of risk. Lipum AB is currently generating about 0.01 per unit of volatility. If you would invest 1,440 in Lipum AB on September 1, 2024 and sell it today you would lose (10.00) from holding Lipum AB or give up 0.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Qleanair Holding AB vs. Lipum AB
Performance |
| Timeline |
| Qleanair Holding |
| Lipum AB |
Qleanair Holding and Lipum AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qleanair Holding and Lipum AB
The main advantage of trading using opposite Qleanair Holding and Lipum AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qleanair Holding position performs unexpectedly, Lipum 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 Lipum AB will offset losses from the drop in Lipum AB's long position.| Qleanair Holding vs. Storytel AB | Qleanair Holding vs. Stillfront Group AB | Qleanair Holding vs. Hexatronic Group AB | Qleanair Holding vs. Jetpak Top Holding |
| Lipum AB vs. Ascelia Pharma AB | Lipum AB vs. NextCell Pharma AB | Lipum AB vs. Annexin Pharmaceuticals AB | Lipum AB vs. AlzeCure Pharma |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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