Correlation Between Lea Bank and ExpreS2ion Biotech

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Can any of the company-specific risk be diversified away by investing in both Lea Bank and ExpreS2ion Biotech 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 Lea Bank and ExpreS2ion Biotech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lea Bank AB and ExpreS2ion Biotech Holding, you can compare the effects of market volatilities on Lea Bank and ExpreS2ion Biotech 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 Lea Bank with a short position of ExpreS2ion Biotech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lea Bank and ExpreS2ion Biotech.

Diversification Opportunities for Lea Bank and ExpreS2ion Biotech

-0.61
  Correlation Coefficient

Excellent diversification

The 3 months correlation between Lea and ExpreS2ion is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Lea Bank AB and ExpreS2ion Biotech Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ExpreS2ion Biotech and Lea Bank 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 Lea Bank AB are associated (or correlated) with ExpreS2ion Biotech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ExpreS2ion Biotech has no effect on the direction of Lea Bank i.e., Lea Bank and ExpreS2ion Biotech go up and down completely randomly.

Pair Corralation between Lea Bank and ExpreS2ion Biotech

Assuming the 90 days trading horizon Lea Bank AB is expected to generate 0.31 times more return on investment than ExpreS2ion Biotech. However, Lea Bank AB is 3.2 times less risky than ExpreS2ion Biotech. It trades about 0.22 of its potential returns per unit of risk. ExpreS2ion Biotech Holding is currently generating about -0.09 per unit of risk. If you would invest  1,200  in Lea Bank AB on September 3, 2025 and sell it today you would earn a total of  275.00  from holding Lea Bank AB or generate 22.92% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Lea Bank AB  vs.  ExpreS2ion Biotech Holding

 Performance 
       Timeline  
Lea Bank AB 

Risk-Adjusted Performance

Solid

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Lea Bank AB are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Lea Bank unveiled solid returns over the last few months and may actually be approaching a breakup point.
ExpreS2ion Biotech 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days ExpreS2ion Biotech Holding has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in January 2026. The current disturbance may also be a sign of long term up-swing for the company investors.

Lea Bank and ExpreS2ion Biotech Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Lea Bank and ExpreS2ion Biotech

The main advantage of trading using opposite Lea Bank and ExpreS2ion Biotech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lea Bank position performs unexpectedly, ExpreS2ion Biotech 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 ExpreS2ion Biotech will offset losses from the drop in ExpreS2ion Biotech's long position.
The idea behind Lea Bank AB and ExpreS2ion Biotech Holding 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..

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