Correlation Between Lyckegard Group and Svenska Handelsbanken

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

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

Diversification Opportunities for Lyckegard Group and Svenska Handelsbanken

0.0

Correlation Coefficient

Lyckegard Group  Svenska Handelsbanken

Pay attention - limited upside

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

Pair Corralation between Lyckegard Group and Svenska Handelsbanken

If you would invest  8,234  in Svenska Handelsbanken AB on March 25, 2025 and sell it today you would earn a total of  4,046  from holding Svenska Handelsbanken AB or generate 49.14% return on investment over 90 days.

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

Lyckegard Group AB  vs.  Svenska Handelsbanken AB

Lyckegard Group AB

Risk-Adjusted Performance

Good

Over the last 90 days Lyckegard Group AB has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Lyckegard Group is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Svenska Handelsbanken

Risk-Adjusted Performance

Very Weak

Over the last 90 days Svenska Handelsbanken AB has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Svenska Handelsbanken is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Lyckegard Group and Svenska Handelsbanken

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

The idea behind Lyckegard Group AB and Svenska Handelsbanken 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.