Correlation Between Lysaght Galvanized and SFP Tech
Can any of the company-specific risk be diversified away by investing in both Lysaght Galvanized and SFP Tech 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 Lysaght Galvanized and SFP Tech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lysaght Galvanized Steel and SFP Tech Holdings, you can compare the effects of market volatilities on Lysaght Galvanized and SFP Tech 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 Lysaght Galvanized with a short position of SFP Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lysaght Galvanized and SFP Tech.
Diversification Opportunities for Lysaght Galvanized and SFP Tech
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Lysaght and SFP is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Lysaght Galvanized Steel and SFP Tech Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SFP Tech Holdings and Lysaght Galvanized 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 Lysaght Galvanized Steel are associated (or correlated) with SFP Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SFP Tech Holdings has no effect on the direction of Lysaght Galvanized i.e., Lysaght Galvanized and SFP Tech go up and down completely randomly.
Pair Corralation between Lysaght Galvanized and SFP Tech
Assuming the 90 days trading horizon Lysaght Galvanized Steel is expected to generate 3.79 times more return on investment than SFP Tech. However, Lysaght Galvanized is 3.79 times more volatile than SFP Tech Holdings. It trades about 0.06 of its potential returns per unit of risk. SFP Tech Holdings is currently generating about -0.01 per unit of risk. If you would invest 156.00 in Lysaght Galvanized Steel on November 4, 2024 and sell it today you would earn a total of 103.00 from holding Lysaght Galvanized Steel or generate 66.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 96.92% |
| Values | Daily Returns |
Lysaght Galvanized Steel vs. SFP Tech Holdings
Performance |
| Timeline |
| Lysaght Galvanized Steel |
| SFP Tech Holdings |
Lysaght Galvanized and SFP Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lysaght Galvanized and SFP Tech
The main advantage of trading using opposite Lysaght Galvanized and SFP Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lysaght Galvanized position performs unexpectedly, SFP Tech 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 SFP Tech will offset losses from the drop in SFP Tech's long position.| Lysaght Galvanized vs. Magni Tech Industries | Lysaght Galvanized vs. Cosmos Technology International | Lysaght Galvanized vs. MI Technovation Bhd | Lysaght Galvanized vs. Globetronics Tech Bhd |
| SFP Tech vs. Impiana Hotels Bhd | SFP Tech vs. Datasonic Group Bhd | SFP Tech vs. Resintech Bhd | SFP Tech vs. Shangri La Hotels |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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