Correlation Between Allego and Luminar Technologies
Can any of the company-specific risk be diversified away by investing in both Allego and Luminar Technologies 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 Allego and Luminar Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Allego Inc and Luminar Technologies, you can compare the effects of market volatilities on Allego and Luminar Technologies 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 Allego with a short position of Luminar Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allego and Luminar Technologies.
Diversification Opportunities for Allego and Luminar Technologies
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Allego and Luminar is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Allego Inc and Luminar Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Luminar Technologies and Allego 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 Allego Inc are associated (or correlated) with Luminar Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Luminar Technologies has no effect on the direction of Allego i.e., Allego and Luminar Technologies go up and down completely randomly.
Pair Corralation between Allego and Luminar Technologies
If you would invest 191.00 in Allego Inc on August 30, 2024 and sell it today you would earn a total of 0.00 from holding Allego Inc or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 4.35% |
| Values | Daily Returns |
Allego Inc vs. Luminar Technologies
Performance |
| Timeline |
| Allego Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Insignificant
| Luminar Technologies |
Allego and Luminar Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allego and Luminar Technologies
The main advantage of trading using opposite Allego and Luminar Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allego position performs unexpectedly, Luminar Technologies 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 Luminar Technologies will offset losses from the drop in Luminar Technologies' long position.| Allego vs. Lear Corporation | Allego vs. Autoliv | Allego vs. American Axle Manufacturing | Allego vs. Dorman Products |
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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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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