Correlation Between Redsense Medical and Lifco AB
Specify exactly 2 symbols:
By analyzing existing cross correlation between Redsense Medical AB and Lifco AB, you can compare the effects of market volatilities on Redsense Medical 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 Redsense Medical with a short position of Lifco AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Redsense Medical and Lifco AB.
Diversification Opportunities for Redsense Medical and Lifco AB
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Redsense and Lifco is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Redsense Medical AB and Lifco AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lifco AB and Redsense Medical 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 Redsense Medical 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 Redsense Medical i.e., Redsense Medical and Lifco AB go up and down completely randomly.
Pair Corralation between Redsense Medical and Lifco AB
Assuming the 90 days trading horizon Redsense Medical AB is expected to under-perform the Lifco AB. In addition to that, Redsense Medical is 2.35 times more volatile than Lifco AB. It trades about -0.1 of its total potential returns per unit of risk. Lifco AB is currently generating about -0.03 per unit of volatility. If you would invest 32,160 in Lifco AB on August 26, 2024 and sell it today you would lose (340.00) from holding Lifco AB or give up 1.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Redsense Medical AB vs. Lifco AB
Performance |
| Timeline |
| Redsense Medical |
| Lifco AB |
Redsense Medical and Lifco AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Redsense Medical and Lifco AB
The main advantage of trading using opposite Redsense Medical and Lifco AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Redsense Medical 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.| Redsense Medical vs. Addtech AB | Redsense Medical vs. Lifco AB | Redsense Medical vs. Indutrade AB | Redsense Medical vs. Lagercrantz Group 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |