Correlation Between L E and ScandBook Holding
Can any of the company-specific risk be diversified away by investing in both L E and ScandBook Holding 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 L E and ScandBook Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between L E Lundbergfretagen and ScandBook Holding AB, you can compare the effects of market volatilities on L E and ScandBook Holding 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 L E with a short position of ScandBook Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of L E and ScandBook Holding.
Diversification Opportunities for L E and ScandBook Holding
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between LUND-B and ScandBook is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding L E Lundbergfretagen and ScandBook Holding AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ScandBook Holding and L E 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 L E Lundbergfretagen are associated (or correlated) with ScandBook Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ScandBook Holding has no effect on the direction of L E i.e., L E and ScandBook Holding go up and down completely randomly.
Pair Corralation between L E and ScandBook Holding
Assuming the 90 days trading horizon L E is expected to generate 2.64 times less return on investment than ScandBook Holding. But when comparing it to its historical volatility, L E Lundbergfretagen is 2.45 times less risky than ScandBook Holding. It trades about 0.11 of its potential returns per unit of risk. ScandBook Holding AB is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 4,240 in ScandBook Holding AB on September 8, 2025 and sell it today you would earn a total of 650.00 from holding ScandBook Holding AB or generate 15.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
L E Lundbergfretagen vs. ScandBook Holding AB
Performance |
| Timeline |
| L E Lundbergfretagen |
| ScandBook Holding |
L E and ScandBook Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with L E and ScandBook Holding
The main advantage of trading using opposite L E and ScandBook Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if L E position performs unexpectedly, ScandBook Holding 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 ScandBook Holding will offset losses from the drop in ScandBook Holding's long position.The idea behind L E Lundbergfretagen and ScandBook Holding 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.| ScandBook Holding vs. Norion Bank | ScandBook Holding vs. Nordic Asia Investment | ScandBook Holding vs. High Coast Distillery | ScandBook Holding vs. Nordea Bank Abp |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |