Correlation Between Raketech Group and Lohilo Foods
Can any of the company-specific risk be diversified away by investing in both Raketech Group 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 Raketech Group and Lohilo Foods into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Raketech Group Holding and Lohilo Foods AB, you can compare the effects of market volatilities on Raketech Group 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 Raketech Group with a short position of Lohilo Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Raketech Group and Lohilo Foods.
Diversification Opportunities for Raketech Group and Lohilo Foods
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Raketech and Lohilo is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Raketech Group Holding 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 Raketech Group 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 Raketech Group Holding 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 Raketech Group i.e., Raketech Group and Lohilo Foods go up and down completely randomly.
Pair Corralation between Raketech Group and Lohilo Foods
Assuming the 90 days trading horizon Raketech Group Holding is expected to under-perform the Lohilo Foods. In addition to that, Raketech Group is 1.34 times more volatile than Lohilo Foods AB. It trades about -0.23 of its total potential returns per unit of risk. Lohilo Foods AB is currently generating about -0.2 per unit of volatility. If you would invest 187.00 in Lohilo Foods AB on August 29, 2024 and sell it today you would lose (43.00) from holding Lohilo Foods AB or give up 22.99% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Raketech Group Holding vs. Lohilo Foods AB
Performance |
| Timeline |
| Raketech Group Holding |
| Lohilo Foods AB |
Raketech Group and Lohilo Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Raketech Group and Lohilo Foods
The main advantage of trading using opposite Raketech Group and Lohilo Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Raketech Group 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.| Raketech Group vs. Catena Media plc | Raketech Group vs. Better Collective | Raketech Group vs. Betsson AB | Raketech Group vs. Kambi Group PLC |
| 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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