Correlation Between Spineguard and Lumibird
Can any of the company-specific risk be diversified away by investing in both Spineguard and Lumibird 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 Spineguard and Lumibird into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Spineguard and Lumibird SA, you can compare the effects of market volatilities on Spineguard and Lumibird 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 Spineguard with a short position of Lumibird. Check out your portfolio center. Please also check ongoing floating volatility patterns of Spineguard and Lumibird.
Diversification Opportunities for Spineguard and Lumibird
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Spineguard and Lumibird is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Spineguard and Lumibird SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lumibird SA and Spineguard 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 Spineguard are associated (or correlated) with Lumibird. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lumibird SA has no effect on the direction of Spineguard i.e., Spineguard and Lumibird go up and down completely randomly.
Pair Corralation between Spineguard and Lumibird
Assuming the 90 days trading horizon Spineguard is expected to generate 3.01 times more return on investment than Lumibird. However, Spineguard is 3.01 times more volatile than Lumibird SA. It trades about 0.03 of its potential returns per unit of risk. Lumibird SA is currently generating about -0.08 per unit of risk. If you would invest 21.00 in Spineguard on August 26, 2024 and sell it today you would earn a total of 0.00 from holding Spineguard or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Spineguard vs. Lumibird SA
Performance |
| Timeline |
| Spineguard |
| Lumibird SA |
Spineguard and Lumibird Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Spineguard and Lumibird
The main advantage of trading using opposite Spineguard and Lumibird positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Spineguard position performs unexpectedly, Lumibird 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 Lumibird will offset losses from the drop in Lumibird's long position.| Spineguard vs. Biomerieux SA | Spineguard vs. Eurofins Scientific SE | Spineguard vs. Sartorius Stedim Biotech | Spineguard vs. SEB SA |
| Lumibird vs. Sartorius Stedim Biotech | Lumibird vs. Lectra SA | Lumibird vs. Teleperformance SE | Lumibird vs. Trigano SA |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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