Correlation Between Advantage Solutions and Luokung Technology
Can any of the company-specific risk be diversified away by investing in both Advantage Solutions and Luokung Technology 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 Advantage Solutions and Luokung Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Advantage Solutions and Luokung Technology Corp, you can compare the effects of market volatilities on Advantage Solutions and Luokung Technology 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 Advantage Solutions with a short position of Luokung Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advantage Solutions and Luokung Technology.
Diversification Opportunities for Advantage Solutions and Luokung Technology
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Advantage and Luokung is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Advantage Solutions and Luokung Technology Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Luokung Technology Corp and Advantage Solutions 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 Advantage Solutions are associated (or correlated) with Luokung Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Luokung Technology Corp has no effect on the direction of Advantage Solutions i.e., Advantage Solutions and Luokung Technology go up and down completely randomly.
Pair Corralation between Advantage Solutions and Luokung Technology
Considering the 90-day investment horizon Advantage Solutions is expected to under-perform the Luokung Technology. But the stock apears to be less risky and, when comparing its historical volatility, Advantage Solutions is 2.58 times less risky than Luokung Technology. The stock trades about -0.2 of its potential returns per unit of risk. The Luokung Technology Corp is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 160.00 in Luokung Technology Corp on October 24, 2024 and sell it today you would earn a total of 9.00 from holding Luokung Technology Corp or generate 5.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Advantage Solutions vs. Luokung Technology Corp
Performance |
| Timeline |
| Advantage Solutions |
| Luokung Technology Corp |
Advantage Solutions and Luokung Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advantage Solutions and Luokung Technology
The main advantage of trading using opposite Advantage Solutions and Luokung Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advantage Solutions position performs unexpectedly, Luokung Technology 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 Luokung Technology will offset losses from the drop in Luokung Technology's long position.| Advantage Solutions vs. Criteo Sa | Advantage Solutions vs. Deluxe | Advantage Solutions vs. Emerald Expositions Events | Advantage Solutions vs. Marchex |
| Luokung Technology vs. Auddia Inc | Luokung Technology vs. Freight Technologies | Luokung Technology vs. CXApp Inc | Luokung Technology vs. Trust Stamp |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |