Correlation Between Lifeclean International and Candles Scandinavia
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By analyzing existing cross correlation between Lifeclean International AB and Candles Scandinavia AB, you can compare the effects of market volatilities on Lifeclean International and Candles Scandinavia 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 Lifeclean International with a short position of Candles Scandinavia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lifeclean International and Candles Scandinavia.
Diversification Opportunities for Lifeclean International and Candles Scandinavia
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Lifeclean and Candles is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Lifeclean International AB and Candles Scandinavia AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Candles Scandinavia and Lifeclean 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 Lifeclean International AB are associated (or correlated) with Candles Scandinavia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Candles Scandinavia has no effect on the direction of Lifeclean International i.e., Lifeclean International and Candles Scandinavia go up and down completely randomly.
Pair Corralation between Lifeclean International and Candles Scandinavia
Assuming the 90 days trading horizon Lifeclean International AB is expected to under-perform the Candles Scandinavia. In addition to that, Lifeclean International is 2.33 times more volatile than Candles Scandinavia AB. It trades about -0.19 of its total potential returns per unit of risk. Candles Scandinavia AB is currently generating about 0.11 per unit of volatility. If you would invest 1,970 in Candles Scandinavia AB on September 5, 2024 and sell it today you would earn a total of 360.00 from holding Candles Scandinavia AB or generate 18.27% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 98.46% |
Values | Daily Returns |
Lifeclean International AB vs. Candles Scandinavia AB
Performance |
Timeline |
Lifeclean International |
Candles Scandinavia |
Lifeclean International and Candles Scandinavia Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Lifeclean International and Candles Scandinavia
The main advantage of trading using opposite Lifeclean International and Candles Scandinavia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lifeclean International position performs unexpectedly, Candles Scandinavia 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 Candles Scandinavia will offset losses from the drop in Candles Scandinavia's long position.Lifeclean International vs. Mendus AB | Lifeclean International vs. JonDeTech Sensors | Lifeclean International vs. Nexam Chemical Holding | Lifeclean International vs. Lohilo Foods AB |
Candles Scandinavia vs. Mendus AB | Candles Scandinavia vs. JonDeTech Sensors | Candles Scandinavia vs. Nexam Chemical Holding | Candles Scandinavia vs. Lohilo Foods 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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