Correlation Between Lexibook Linguistic and Linedata Services
Can any of the company-specific risk be diversified away by investing in both Lexibook Linguistic and Linedata Services 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 Lexibook Linguistic and Linedata Services into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lexibook Linguistic Electronic and Linedata Services SA, you can compare the effects of market volatilities on Lexibook Linguistic and Linedata Services 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 Lexibook Linguistic with a short position of Linedata Services. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lexibook Linguistic and Linedata Services.
Diversification Opportunities for Lexibook Linguistic and Linedata Services
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Lexibook and Linedata is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Lexibook Linguistic Electronic and Linedata Services SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Linedata Services and Lexibook Linguistic 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 Lexibook Linguistic Electronic are associated (or correlated) with Linedata Services. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Linedata Services has no effect on the direction of Lexibook Linguistic i.e., Lexibook Linguistic and Linedata Services go up and down completely randomly.
Pair Corralation between Lexibook Linguistic and Linedata Services
Assuming the 90 days trading horizon Lexibook Linguistic is expected to generate 5.81 times less return on investment than Linedata Services. But when comparing it to its historical volatility, Lexibook Linguistic Electronic is 6.88 times less risky than Linedata Services. It trades about 0.15 of its potential returns per unit of risk. Linedata Services SA is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 8,200 in Linedata Services SA on October 9, 2024 and sell it today you would earn a total of 340.00 from holding Linedata Services SA or generate 4.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lexibook Linguistic Electronic vs. Linedata Services SA
Performance |
| Timeline |
| Lexibook Linguistic |
| Linedata Services |
Lexibook Linguistic and Linedata Services Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lexibook Linguistic and Linedata Services
The main advantage of trading using opposite Lexibook Linguistic and Linedata Services positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lexibook Linguistic position performs unexpectedly, Linedata Services 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 Linedata Services will offset losses from the drop in Linedata Services' long position.| Lexibook Linguistic vs. SA Catana Group | Lexibook Linguistic vs. Reworld Media | Lexibook Linguistic vs. Biosynex | Lexibook Linguistic vs. Moulinvest |
| Linedata Services vs. Sword Group SE | Linedata Services vs. Lectra SA | Linedata Services vs. Neurones | Linedata Services vs. Aubay Socit Anonyme |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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