Correlation Between B3 Consulting and Lagercrantz Group
Can any of the company-specific risk be diversified away by investing in both B3 Consulting and Lagercrantz Group 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 B3 Consulting and Lagercrantz Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between B3 Consulting Group and Lagercrantz Group AB, you can compare the effects of market volatilities on B3 Consulting and Lagercrantz Group 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 B3 Consulting with a short position of Lagercrantz Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of B3 Consulting and Lagercrantz Group.
Diversification Opportunities for B3 Consulting and Lagercrantz Group
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between B3 Consulting and Lagercrantz is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding B3 Consulting Group and Lagercrantz Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lagercrantz Group and B3 Consulting 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 B3 Consulting Group are associated (or correlated) with Lagercrantz Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lagercrantz Group has no effect on the direction of B3 Consulting i.e., B3 Consulting and Lagercrantz Group go up and down completely randomly.
Pair Corralation between B3 Consulting and Lagercrantz Group
Assuming the 90 days horizon B3 Consulting Group is expected to under-perform the Lagercrantz Group. In addition to that, B3 Consulting is 1.32 times more volatile than Lagercrantz Group AB. It trades about -0.34 of its total potential returns per unit of risk. Lagercrantz Group AB is currently generating about 0.05 per unit of volatility. If you would invest 16,290 in Lagercrantz Group AB on January 31, 2024 and sell it today you would earn a total of 290.00 from holding Lagercrantz Group AB or generate 1.78% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
B3 Consulting Group vs. Lagercrantz Group AB
Performance |
Timeline |
B3 Consulting Group |
Lagercrantz Group |
B3 Consulting and Lagercrantz Group Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with B3 Consulting and Lagercrantz Group
The main advantage of trading using opposite B3 Consulting and Lagercrantz Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if B3 Consulting position performs unexpectedly, Lagercrantz Group 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 Lagercrantz Group will offset losses from the drop in Lagercrantz Group's long position.B3 Consulting vs. FormPipe Software AB | B3 Consulting vs. Micro Systemation AB | B3 Consulting vs. CTT Systems AB | B3 Consulting vs. G5 Entertainment publ |
Lagercrantz Group vs. FormPipe Software AB | Lagercrantz Group vs. Micro Systemation AB | Lagercrantz Group vs. CTT Systems AB | Lagercrantz Group vs. G5 Entertainment publ |
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 .
Other Complementary Tools
Share Portfolio Track or share privately all of your investments from the convenience of any device | |
Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
Content Syndication Quickly integrate customizable finance content to your own investment portal | |
Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |