Correlation Between USWE SPORTS and Lions Gate
Can any of the company-specific risk be diversified away by investing in both USWE SPORTS and Lions Gate 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 USWE SPORTS and Lions Gate into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between USWE SPORTS AB and Lions Gate Entertainment, you can compare the effects of market volatilities on USWE SPORTS and Lions Gate 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 USWE SPORTS with a short position of Lions Gate. Check out your portfolio center. Please also check ongoing floating volatility patterns of USWE SPORTS and Lions Gate.
Diversification Opportunities for USWE SPORTS and Lions Gate
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between USWE and Lions is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding USWE SPORTS AB and Lions Gate Entertainment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lions Gate Entertainment and USWE SPORTS 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 USWE SPORTS AB are associated (or correlated) with Lions Gate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lions Gate Entertainment has no effect on the direction of USWE SPORTS i.e., USWE SPORTS and Lions Gate go up and down completely randomly.
Pair Corralation between USWE SPORTS and Lions Gate
If you would invest 56.00 in USWE SPORTS AB on September 12, 2024 and sell it today you would earn a total of 16.00 from holding USWE SPORTS AB or generate 28.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 1.56% |
| Values | Daily Returns |
USWE SPORTS AB vs. Lions Gate Entertainment
Performance |
| Timeline |
| USWE SPORTS AB |
| Lions Gate Entertainment |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
USWE SPORTS and Lions Gate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with USWE SPORTS and Lions Gate
The main advantage of trading using opposite USWE SPORTS and Lions Gate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if USWE SPORTS position performs unexpectedly, Lions Gate 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 Lions Gate will offset losses from the drop in Lions Gate's long position.| USWE SPORTS vs. Superior Plus Corp | USWE SPORTS vs. SIVERS SEMICONDUCTORS AB | USWE SPORTS vs. Norsk Hydro ASA | USWE SPORTS vs. Reliance Steel Aluminum |
| Lions Gate vs. Citic Telecom International | Lions Gate vs. CITIC Telecom International | Lions Gate vs. Iridium Communications | Lions Gate vs. China Communications Services |
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 Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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