Correlation Between Les Hotels and Lexibook Linguistic
Can any of the company-specific risk be diversified away by investing in both Les Hotels and Lexibook Linguistic 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 Les Hotels and Lexibook Linguistic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Les Hotels Bav and Lexibook Linguistic Electronic, you can compare the effects of market volatilities on Les Hotels and Lexibook Linguistic 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 Les Hotels with a short position of Lexibook Linguistic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Les Hotels and Lexibook Linguistic.
Diversification Opportunities for Les Hotels and Lexibook Linguistic
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Les and Lexibook is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Les Hotels Bav and Lexibook Linguistic Electronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lexibook Linguistic and Les Hotels 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 Les Hotels Bav are associated (or correlated) with Lexibook Linguistic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lexibook Linguistic has no effect on the direction of Les Hotels i.e., Les Hotels and Lexibook Linguistic go up and down completely randomly.
Pair Corralation between Les Hotels and Lexibook Linguistic
Assuming the 90 days trading horizon Les Hotels Bav is expected to under-perform the Lexibook Linguistic. In addition to that, Les Hotels is 3.2 times more volatile than Lexibook Linguistic Electronic. It trades about -0.16 of its total potential returns per unit of risk. Lexibook Linguistic Electronic is currently generating about 0.15 per unit of volatility. If you would invest 398.00 in Lexibook Linguistic Electronic on October 9, 2024 and sell it today you would earn a total of 3.00 from holding Lexibook Linguistic Electronic or generate 0.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Les Hotels Bav vs. Lexibook Linguistic Electronic
Performance |
| Timeline |
| Les Hotels Bav |
| Lexibook Linguistic |
Les Hotels and Lexibook Linguistic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Les Hotels and Lexibook Linguistic
The main advantage of trading using opposite Les Hotels and Lexibook Linguistic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Les Hotels position performs unexpectedly, Lexibook Linguistic 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 Lexibook Linguistic will offset losses from the drop in Lexibook Linguistic's long position.| Les Hotels vs. Les Htels de | Les Hotels vs. Moulinvest | Les Hotels vs. Bernard Loisea | Les Hotels vs. Groupimo SA |
| Lexibook Linguistic vs. SA Catana Group | Lexibook Linguistic vs. Reworld Media | Lexibook Linguistic vs. Biosynex | Lexibook Linguistic vs. Moulinvest |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |