Correlation Between Lyko Group and Candles Scandinavia
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By analyzing existing cross correlation between Lyko Group A and Candles Scandinavia AB, you can compare the effects of market volatilities on Lyko Group 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 Lyko Group with a short position of Candles Scandinavia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lyko Group and Candles Scandinavia.
Diversification Opportunities for Lyko Group and Candles Scandinavia
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Lyko and Candles is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Lyko Group A and Candles Scandinavia AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Candles Scandinavia and Lyko Group 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 Lyko Group A 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 Lyko Group i.e., Lyko Group and Candles Scandinavia go up and down completely randomly.
Pair Corralation between Lyko Group and Candles Scandinavia
Assuming the 90 days trading horizon Lyko Group A is expected to under-perform the Candles Scandinavia. In addition to that, Lyko Group is 1.1 times more volatile than Candles Scandinavia AB. It trades about -0.11 of its total potential returns per unit of risk. Candles Scandinavia AB is currently generating about 0.09 per unit of volatility. If you would invest 1,910 in Candles Scandinavia AB on September 8, 2024 and sell it today you would earn a total of 280.00 from holding Candles Scandinavia AB or generate 14.66% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Lyko Group A vs. Candles Scandinavia AB
Performance |
Timeline |
Lyko Group A |
Candles Scandinavia |
Lyko Group and Candles Scandinavia Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Lyko Group and Candles Scandinavia
The main advantage of trading using opposite Lyko Group and Candles Scandinavia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lyko Group 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.Lyko Group vs. Boozt AB | Lyko Group vs. G5 Entertainment publ | Lyko Group vs. Stillfront Group AB | Lyko Group vs. Storytel 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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