Correlation Between Autoliv and Logistea

Can any of the company-specific risk be diversified away by investing in both Autoliv and Logistea 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 Autoliv and Logistea into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Autoliv and Logistea AB Series, you can compare the effects of market volatilities on Autoliv and Logistea 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 Autoliv with a short position of Logistea. Check out your portfolio center. Please also check ongoing floating volatility patterns of Autoliv and Logistea.

Diversification Opportunities for Autoliv and Logistea

0.0

Correlation Coefficient

Autoliv  Logistea

Pay attention - limited upside

The 3 months correlation between Autoliv and Logistea is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Autoliv and Logistea AB Series in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Logistea AB Series and Autoliv 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 Autoliv are associated (or correlated) with Logistea. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Logistea AB Series has no effect on the direction of Autoliv i.e., Autoliv and Logistea go up and down completely randomly.

Pair Corralation between Autoliv and Logistea

If you would invest  86,501  in Autoliv on April 23, 2025 and sell it today you would earn a total of  22,499  from holding Autoliv or generate 26.01% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Autoliv  vs.  Logistea AB Series

Autoliv

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Autoliv are ranked lower than 21 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain basic indicators, Autoliv exhibited solid returns over the last few months and may actually be approaching a breakup point.

Logistea AB Series

Risk-Adjusted Performance

Very Weak

Over the last 90 days Logistea AB Series has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong technical and fundamental indicators, Logistea is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Autoliv and Logistea

The main advantage of trading using opposite Autoliv and Logistea positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Autoliv position performs unexpectedly, Logistea 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 Logistea will offset losses from the drop in Logistea's long position.

The idea behind Autoliv and Logistea AB Series pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.