Correlation Between EPlay Digital and Lloyds Banking
Can any of the company-specific risk be diversified away by investing in both EPlay Digital and Lloyds Banking 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 EPlay Digital and Lloyds Banking into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ePlay Digital and Lloyds Banking Group, you can compare the effects of market volatilities on EPlay Digital and Lloyds Banking 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 EPlay Digital with a short position of Lloyds Banking. Check out your portfolio center. Please also check ongoing floating volatility patterns of EPlay Digital and Lloyds Banking.
Diversification Opportunities for EPlay Digital and Lloyds Banking
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between EPlay and Lloyds is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ePlay Digital and Lloyds Banking Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lloyds Banking Group and EPlay Digital 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 ePlay Digital are associated (or correlated) with Lloyds Banking. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lloyds Banking Group has no effect on the direction of EPlay Digital i.e., EPlay Digital and Lloyds Banking go up and down completely randomly.
Pair Corralation between EPlay Digital and Lloyds Banking
If you would invest 252.00 in Lloyds Banking Group on November 30, 2024 and sell it today you would earn a total of 88.00 from holding Lloyds Banking Group or generate 34.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 97.67% |
| Values | Daily Returns |
ePlay Digital vs. Lloyds Banking Group
Performance |
| Timeline |
| ePlay Digital |
| Lloyds Banking Group |
EPlay Digital and Lloyds Banking Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EPlay Digital and Lloyds Banking
The main advantage of trading using opposite EPlay Digital and Lloyds Banking positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EPlay Digital position performs unexpectedly, Lloyds Banking 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 Lloyds Banking will offset losses from the drop in Lloyds Banking's long position.| EPlay Digital vs. ECHO INVESTMENT ZY | EPlay Digital vs. Keck Seng Investments | EPlay Digital vs. Brockhaus Capital Management | EPlay Digital vs. Ares Management Corp |
| Lloyds Banking vs. CORNISH METALS INC | Lloyds Banking vs. UNIVERSAL MUSIC GROUP | Lloyds Banking vs. FIREWEED METALS P | Lloyds Banking vs. Zijin Mining Group |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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