Correlation Between Pureun Mutual and LIG ES
Can any of the company-specific risk be diversified away by investing in both Pureun Mutual and LIG ES 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 Pureun Mutual and LIG ES into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pureun Mutual Savings and LIG ES SPAC, you can compare the effects of market volatilities on Pureun Mutual and LIG ES 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 Pureun Mutual with a short position of LIG ES. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pureun Mutual and LIG ES.
Diversification Opportunities for Pureun Mutual and LIG ES
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Pureun and LIG is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Pureun Mutual Savings and LIG ES SPAC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LIG ES SPAC and Pureun Mutual 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 Pureun Mutual Savings are associated (or correlated) with LIG ES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LIG ES SPAC has no effect on the direction of Pureun Mutual i.e., Pureun Mutual and LIG ES go up and down completely randomly.
Pair Corralation between Pureun Mutual and LIG ES
Assuming the 90 days trading horizon Pureun Mutual is expected to generate 3.59 times less return on investment than LIG ES. But when comparing it to its historical volatility, Pureun Mutual Savings is 2.06 times less risky than LIG ES. It trades about 0.01 of its potential returns per unit of risk. LIG ES SPAC is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 436,500 in LIG ES SPAC on November 7, 2024 and sell it today you would lose (2,000) from holding LIG ES SPAC or give up 0.46% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pureun Mutual Savings vs. LIG ES SPAC
Performance |
| Timeline |
| Pureun Mutual Savings |
| LIG ES SPAC |
Pureun Mutual and LIG ES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pureun Mutual and LIG ES
The main advantage of trading using opposite Pureun Mutual and LIG ES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pureun Mutual position performs unexpectedly, LIG ES 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 LIG ES will offset losses from the drop in LIG ES's long position.| Pureun Mutual vs. Alton Sports CoLtd | Pureun Mutual vs. Tuksu Engineering ConstructionLtd | Pureun Mutual vs. Digital Power Communications | Pureun Mutual vs. LG Display Co |
| LIG ES vs. LG Chem | LIG ES vs. Chunbo Co | LIG ES vs. DukSan Neolux CoLtd | LIG ES vs. Hyosung Chemical Corp |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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