Correlation Between Lexibook Linguistic and BEBO Health
Can any of the company-specific risk be diversified away by investing in both Lexibook Linguistic and BEBO Health 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 BEBO Health 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 BEBO Health SA, you can compare the effects of market volatilities on Lexibook Linguistic and BEBO Health 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 BEBO Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lexibook Linguistic and BEBO Health.
Diversification Opportunities for Lexibook Linguistic and BEBO Health
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Lexibook and BEBO is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Lexibook Linguistic Electronic and BEBO Health SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BEBO Health SA 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 BEBO Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BEBO Health SA has no effect on the direction of Lexibook Linguistic i.e., Lexibook Linguistic and BEBO Health go up and down completely randomly.
Pair Corralation between Lexibook Linguistic and BEBO Health
If you would invest 397.00 in Lexibook Linguistic Electronic on August 29, 2024 and sell it today you would earn a total of 2.00 from holding Lexibook Linguistic Electronic or generate 0.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lexibook Linguistic Electronic vs. BEBO Health SA
Performance |
| Timeline |
| Lexibook Linguistic |
| BEBO Health SA |
Lexibook Linguistic and BEBO Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lexibook Linguistic and BEBO Health
The main advantage of trading using opposite Lexibook Linguistic and BEBO Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lexibook Linguistic position performs unexpectedly, BEBO Health 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 BEBO Health will offset losses from the drop in BEBO Health's long position.| Lexibook Linguistic vs. SA Catana Group | Lexibook Linguistic vs. Reworld Media | Lexibook Linguistic vs. Biosynex | Lexibook Linguistic vs. Moulinvest |
| BEBO Health vs. DONTNOD Entertainment SA | BEBO Health vs. Axway Software | BEBO Health vs. Guandao Puer Investment | BEBO Health vs. X Fab Silicon |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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