Correlation Between Lamar Advertising and Koninklijke Ahold
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By analyzing existing cross correlation between Lamar Advertising and Koninklijke Ahold Delhaize, you can compare the effects of market volatilities on Lamar Advertising and Koninklijke Ahold 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 Lamar Advertising with a short position of Koninklijke Ahold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lamar Advertising and Koninklijke Ahold.
Diversification Opportunities for Lamar Advertising and Koninklijke Ahold
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Lamar and Koninklijke is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Lamar Advertising and Koninklijke Ahold Delhaize in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Koninklijke Ahold and Lamar Advertising 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 Lamar Advertising are associated (or correlated) with Koninklijke Ahold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Koninklijke Ahold has no effect on the direction of Lamar Advertising i.e., Lamar Advertising and Koninklijke Ahold go up and down completely randomly.
Pair Corralation between Lamar Advertising and Koninklijke Ahold
Assuming the 90 days trading horizon Lamar Advertising is expected to generate 1.84 times less return on investment than Koninklijke Ahold. In addition to that, Lamar Advertising is 1.68 times more volatile than Koninklijke Ahold Delhaize. It trades about 0.09 of its total potential returns per unit of risk. Koninklijke Ahold Delhaize is currently generating about 0.27 per unit of volatility. If you would invest 3,082 in Koninklijke Ahold Delhaize on September 5, 2024 and sell it today you would earn a total of 207.00 from holding Koninklijke Ahold Delhaize or generate 6.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lamar Advertising vs. Koninklijke Ahold Delhaize
Performance |
| Timeline |
| Lamar Advertising |
| Koninklijke Ahold |
Lamar Advertising and Koninklijke Ahold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lamar Advertising and Koninklijke Ahold
The main advantage of trading using opposite Lamar Advertising and Koninklijke Ahold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lamar Advertising position performs unexpectedly, Koninklijke Ahold 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 Koninklijke Ahold will offset losses from the drop in Koninklijke Ahold's long position.| Lamar Advertising vs. Apple Inc | Lamar Advertising vs. Apple Inc | Lamar Advertising vs. Apple Inc | Lamar Advertising vs. Apple Inc |
| Koninklijke Ahold vs. Tencent Music Entertainment | Koninklijke Ahold vs. SCANDMEDICAL SOLDK 040 | Koninklijke Ahold vs. TOREX SEMICONDUCTOR LTD | Koninklijke Ahold vs. Apollo Medical Holdings |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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