Correlation Between Lungyen Life and Cipherlab
Can any of the company-specific risk be diversified away by investing in both Lungyen Life and Cipherlab 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 Lungyen Life and Cipherlab into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lungyen Life Service and Cipherlab Co, you can compare the effects of market volatilities on Lungyen Life and Cipherlab 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 Lungyen Life with a short position of Cipherlab. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lungyen Life and Cipherlab.
Diversification Opportunities for Lungyen Life and Cipherlab
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Lungyen and Cipherlab is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Lungyen Life Service and Cipherlab Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cipherlab and Lungyen Life 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 Lungyen Life Service are associated (or correlated) with Cipherlab. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cipherlab has no effect on the direction of Lungyen Life i.e., Lungyen Life and Cipherlab go up and down completely randomly.
Pair Corralation between Lungyen Life and Cipherlab
Assuming the 90 days trading horizon Lungyen Life Service is expected to under-perform the Cipherlab. But the stock apears to be less risky and, when comparing its historical volatility, Lungyen Life Service is 1.27 times less risky than Cipherlab. The stock trades about -0.18 of its potential returns per unit of risk. The Cipherlab Co is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 2,270 in Cipherlab Co on October 14, 2024 and sell it today you would earn a total of 135.00 from holding Cipherlab Co or generate 5.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lungyen Life Service vs. Cipherlab Co
Performance |
| Timeline |
| Lungyen Life Service |
| Cipherlab |
Lungyen Life and Cipherlab Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lungyen Life and Cipherlab
The main advantage of trading using opposite Lungyen Life and Cipherlab positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lungyen Life position performs unexpectedly, Cipherlab 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 Cipherlab will offset losses from the drop in Cipherlab's long position.| Lungyen Life vs. Da Lue International | Lungyen Life vs. Foxconn Technology Co | Lungyen Life vs. Fubon Financial Holding | Lungyen Life vs. YuantaP shares Taiwan Top |
| Cipherlab vs. AVerMedia Technologies | Cipherlab vs. Min Aik Technology | Cipherlab vs. Uniform Industrial Corp | Cipherlab vs. Information Technology Total |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |