Correlation Between Lifeclean International and TradeDoubler

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

By analyzing existing cross correlation between Lifeclean International AB and TradeDoubler AB, you can compare the effects of market volatilities on Lifeclean International and TradeDoubler 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 TradeDoubler. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lifeclean International and TradeDoubler.

Diversification Opportunities for Lifeclean International and TradeDoubler

0.22

Correlation Coefficient

Lifeclean International  TradeDoubler

Modest diversification

The 3 months correlation between Lifeclean and TradeDoubler is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Lifeclean International AB and TradeDoubler AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TradeDoubler AB 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 TradeDoubler. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TradeDoubler AB has no effect on the direction of Lifeclean International i.e., Lifeclean International and TradeDoubler go up and down completely randomly.

Pair Corralation between Lifeclean International and TradeDoubler

Assuming the 90 days trading horizon Lifeclean International AB is expected to under-perform the TradeDoubler. In addition to that, Lifeclean International is 1.72 times more volatile than TradeDoubler AB. It trades about -0.16 of its total potential returns per unit of risk. TradeDoubler AB is currently generating about 0.07 per unit of volatility. If you would invest  650.00  in TradeDoubler AB on April 22, 2025 and sell it today you would earn a total of  72.00  from holding TradeDoubler AB or generate 11.08% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Lifeclean International AB  vs.  TradeDoubler AB

Lifeclean International

Risk-Adjusted Performance

Very Weak

Over the last 90 days Lifeclean International AB has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's essential indicators remain somewhat strong which may send shares a bit higher in August 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

TradeDoubler AB

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in TradeDoubler AB are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, TradeDoubler unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Lifeclean International and TradeDoubler

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

The idea behind Lifeclean International AB and TradeDoubler AB 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.

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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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.