Correlation Between Lifco AB and Skanska AB
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By analyzing existing cross correlation between Lifco AB and Skanska AB, you can compare the effects of market volatilities on Lifco AB and Skanska 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 Lifco AB with a short position of Skanska AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lifco AB and Skanska AB.
Diversification Opportunities for Lifco AB and Skanska AB
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Lifco and Skanska is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Lifco AB and Skanska AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Skanska AB and Lifco AB 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 Lifco AB are associated (or correlated) with Skanska AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Skanska AB has no effect on the direction of Lifco AB i.e., Lifco AB and Skanska AB go up and down completely randomly.
Pair Corralation between Lifco AB and Skanska AB
Assuming the 90 days trading horizon Lifco AB is expected to generate 2.98 times less return on investment than Skanska AB. In addition to that, Lifco AB is 1.39 times more volatile than Skanska AB. It trades about 0.05 of its total potential returns per unit of risk. Skanska AB is currently generating about 0.23 per unit of volatility. If you would invest 20,130 in Skanska AB on September 9, 2024 and sell it today you would earn a total of 3,390 from holding Skanska AB or generate 16.84% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Lifco AB vs. Skanska AB
Performance |
Timeline |
Lifco AB |
Skanska AB |
Lifco AB and Skanska AB Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Lifco AB and Skanska AB
The main advantage of trading using opposite Lifco AB and Skanska AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lifco AB position performs unexpectedly, Skanska 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 Skanska AB will offset losses from the drop in Skanska AB's long position.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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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