Correlation Between CurrentC Power and Life360
Can any of the company-specific risk be diversified away by investing in both CurrentC Power and Life360 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 CurrentC Power and Life360 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CurrentC Power and Life360, you can compare the effects of market volatilities on CurrentC Power and Life360 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 CurrentC Power with a short position of Life360. Check out your portfolio center. Please also check ongoing floating volatility patterns of CurrentC Power and Life360.
Diversification Opportunities for CurrentC Power and Life360
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between CurrentC and Life360 is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding CurrentC Power and Life360 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Life360 and CurrentC Power 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 CurrentC Power are associated (or correlated) with Life360. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Life360 has no effect on the direction of CurrentC Power i.e., CurrentC Power and Life360 go up and down completely randomly.
Pair Corralation between CurrentC Power and Life360
Given the investment horizon of 90 days CurrentC Power is expected to generate 31.58 times more return on investment than Life360. However, CurrentC Power is 31.58 times more volatile than Life360. It trades about 0.31 of its potential returns per unit of risk. Life360 is currently generating about 0.17 per unit of risk. If you would invest 20.00 in CurrentC Power on November 2, 2024 and sell it today you would lose (2.00) from holding CurrentC Power or give up 10.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
CurrentC Power vs. Life360
Performance |
| Timeline |
| CurrentC Power |
| Life360 |
CurrentC Power and Life360 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CurrentC Power and Life360
The main advantage of trading using opposite CurrentC Power and Life360 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CurrentC Power position performs unexpectedly, Life360 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 Life360 will offset losses from the drop in Life360's long position.| CurrentC Power vs. ProSiebenSat1 Media AG | CurrentC Power vs. RTL Group SA | CurrentC Power vs. iHeartMedia | CurrentC Power vs. ITV PLC ADR |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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