Correlation Between Millicom International and Lidds AB
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By analyzing existing cross correlation between Millicom International Cellular and Lidds AB, you can compare the effects of market volatilities on Millicom International and Lidds 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 Millicom International with a short position of Lidds AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Millicom International and Lidds AB.
Diversification Opportunities for Millicom International and Lidds AB
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Millicom and Lidds is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Millicom International Cellula and Lidds AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lidds AB and Millicom International 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 Millicom International Cellular are associated (or correlated) with Lidds AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lidds AB has no effect on the direction of Millicom International i.e., Millicom International and Lidds AB go up and down completely randomly.
Pair Corralation between Millicom International and Lidds AB
Assuming the 90 days trading horizon Millicom International Cellular is expected to generate 0.19 times more return on investment than Lidds AB. However, Millicom International Cellular is 5.18 times less risky than Lidds AB. It trades about 0.09 of its potential returns per unit of risk. Lidds AB is currently generating about -0.02 per unit of risk. If you would invest 13,620 in Millicom International Cellular on August 28, 2024 and sell it today you would earn a total of 15,580 from holding Millicom International Cellular or generate 114.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Millicom International Cellula vs. Lidds AB
Performance |
| Timeline |
| Millicom International |
| Lidds AB |
Millicom International and Lidds AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Millicom International and Lidds AB
The main advantage of trading using opposite Millicom International and Lidds AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Millicom International position performs unexpectedly, Lidds 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 Lidds AB will offset losses from the drop in Lidds AB's long position.| Millicom International vs. Lidds AB | Millicom International vs. Serstech AB | Millicom International vs. Transtema Group AB | Millicom International vs. Enorama Pharma AB |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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