Correlation Between Resurs Holding and L E
Can any of the company-specific risk be diversified away by investing in both Resurs Holding and L E 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 Resurs Holding and L E into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Resurs Holding AB and L E Lundbergfretagen, you can compare the effects of market volatilities on Resurs Holding and L E 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 Resurs Holding with a short position of L E. Check out your portfolio center. Please also check ongoing floating volatility patterns of Resurs Holding and L E.
Diversification Opportunities for Resurs Holding and L E
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Resurs and LUND-B is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Resurs Holding AB and L E Lundbergfretagen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on L E Lundbergfretagen and Resurs 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 Resurs Holding AB are associated (or correlated) with L E. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of L E Lundbergfretagen has no effect on the direction of Resurs Holding i.e., Resurs Holding and L E go up and down completely randomly.
Pair Corralation between Resurs Holding and L E
If you would invest 2,350 in Resurs Holding AB on September 2, 2024 and sell it today you would earn a total of 0.00 from holding Resurs Holding AB or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Resurs Holding AB vs. L E Lundbergfretagen
Performance |
| Timeline |
| Resurs Holding AB |
| L E Lundbergfretagen |
Resurs Holding and L E Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Resurs Holding and L E
The main advantage of trading using opposite Resurs Holding and L E positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Resurs Holding position performs unexpectedly, L E 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 L E will offset losses from the drop in L E's long position.| Resurs Holding vs. Bure Equity AB | Resurs Holding vs. Creades AB | Resurs Holding vs. L E Lundbergfretagen | Resurs Holding vs. Industrivarden AB ser |
| L E vs. Investment AB Latour | L E vs. Industrivarden AB ser | L E vs. Kinnevik Investment AB | L E vs. Investor AB ser |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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