Correlation Between LG Energy and Lotte Reit
Can any of the company-specific risk be diversified away by investing in both LG Energy and Lotte Reit 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 LG Energy and Lotte Reit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LG Energy Solution and Lotte Reit Co, you can compare the effects of market volatilities on LG Energy and Lotte Reit 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 LG Energy with a short position of Lotte Reit. Check out your portfolio center. Please also check ongoing floating volatility patterns of LG Energy and Lotte Reit.
Diversification Opportunities for LG Energy and Lotte Reit
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between 373220 and Lotte is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding LG Energy Solution and Lotte Reit Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lotte Reit and LG Energy 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 LG Energy Solution are associated (or correlated) with Lotte Reit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lotte Reit has no effect on the direction of LG Energy i.e., LG Energy and Lotte Reit go up and down completely randomly.
Pair Corralation between LG Energy and Lotte Reit
If you would invest 0.00 in Lotte Reit Co on October 9, 2024 and sell it today you would earn a total of 0.00 from holding Lotte Reit Co or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 5.56% |
| Values | Daily Returns |
LG Energy Solution vs. Lotte Reit Co
Performance |
| Timeline |
| LG Energy Solution |
| Lotte Reit |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
LG Energy and Lotte Reit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LG Energy and Lotte Reit
The main advantage of trading using opposite LG Energy and Lotte Reit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LG Energy position performs unexpectedly, Lotte Reit 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 Lotte Reit will offset losses from the drop in Lotte Reit's long position.| LG Energy vs. Kolon Plastics | LG Energy vs. Nable Communications | LG Energy vs. Hannong Chemicals | LG Energy vs. CG Hi Tech |
| Lotte Reit vs. Ssangyong Information Communication | Lotte Reit vs. Samsung Electronics Co | Lotte Reit vs. Daeduck Electronics Co | Lotte Reit vs. Digital Power Communications |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |