Correlation Between Immunovia Publ and Lohilo Foods
Can any of the company-specific risk be diversified away by investing in both Immunovia Publ 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 Immunovia Publ and Lohilo Foods into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Immunovia publ AB and Lohilo Foods AB, you can compare the effects of market volatilities on Immunovia Publ 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 Immunovia Publ with a short position of Lohilo Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Immunovia Publ and Lohilo Foods.
Diversification Opportunities for Immunovia Publ and Lohilo Foods
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Immunovia and Lohilo is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Immunovia publ AB 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 Immunovia Publ 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 Immunovia publ AB 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 Immunovia Publ i.e., Immunovia Publ and Lohilo Foods go up and down completely randomly.
Pair Corralation between Immunovia Publ and Lohilo Foods
Assuming the 90 days trading horizon Immunovia publ AB is expected to generate 2.41 times more return on investment than Lohilo Foods. However, Immunovia Publ is 2.41 times more volatile than Lohilo Foods AB. It trades about 0.05 of its potential returns per unit of risk. Lohilo Foods AB is currently generating about -0.11 per unit of risk. If you would invest 83.00 in Immunovia publ AB on September 5, 2024 and sell it today you would lose (1.00) from holding Immunovia publ AB or give up 1.2% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Immunovia publ AB vs. Lohilo Foods AB
Performance |
Timeline |
Immunovia publ AB |
Lohilo Foods AB |
Immunovia Publ and Lohilo Foods Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Immunovia Publ and Lohilo Foods
The main advantage of trading using opposite Immunovia Publ and Lohilo Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Immunovia Publ 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.Immunovia Publ vs. ADDvise Group B | Immunovia Publ vs. Hanza AB | Immunovia Publ vs. Awardit AB | Immunovia Publ vs. Doxa AB |
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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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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