Correlation Between Logistea and Heliospectra Publ

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

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

Diversification Opportunities for Logistea and Heliospectra Publ

-0.47

Correlation Coefficient

Logistea  Heliospectra Publ

Very good diversification

The 3 months correlation between Logistea and Heliospectra is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Logistea AB Series and Heliospectra publ AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Heliospectra publ and Logistea 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 Logistea AB Series are associated (or correlated) with Heliospectra Publ. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Heliospectra publ has no effect on the direction of Logistea i.e., Logistea and Heliospectra Publ go up and down completely randomly.

Pair Corralation between Logistea and Heliospectra Publ

Assuming the 90 days trading horizon Logistea AB Series is expected to generate 0.33 times more return on investment than Heliospectra Publ. However, Logistea AB Series is 3.03 times less risky than Heliospectra Publ. It trades about 0.13 of its potential returns per unit of risk. Heliospectra publ AB is currently generating about -0.02 per unit of risk. If you would invest  1,445  in Logistea AB Series on April 24, 2025 and sell it today you would earn a total of  223.00  from holding Logistea AB Series or generate 15.43% return on investment over 90 days.

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

Logistea AB Series  vs.  Heliospectra publ AB

Logistea AB Series

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Logistea AB Series are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak technical and fundamental indicators, Logistea sustained solid returns over the last few months and may actually be approaching a breakup point.

Heliospectra publ

Risk-Adjusted Performance

Very Weak

Over the last 90 days Heliospectra publ AB has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with Logistea and Heliospectra Publ

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

The idea behind Logistea AB Series and Heliospectra publ 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.

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