Correlation Between Arhaus and Lizhan Environmental
Can any of the company-specific risk be diversified away by investing in both Arhaus and Lizhan Environmental 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 Arhaus and Lizhan Environmental into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Arhaus Inc and Lizhan Environmental, you can compare the effects of market volatilities on Arhaus and Lizhan Environmental 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 Arhaus with a short position of Lizhan Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Arhaus and Lizhan Environmental.
Diversification Opportunities for Arhaus and Lizhan Environmental
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Arhaus and Lizhan is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Arhaus Inc and Lizhan Environmental in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lizhan Environmental and Arhaus 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 Arhaus Inc are associated (or correlated) with Lizhan Environmental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lizhan Environmental has no effect on the direction of Arhaus i.e., Arhaus and Lizhan Environmental go up and down completely randomly.
Pair Corralation between Arhaus and Lizhan Environmental
If you would invest 1,176 in Arhaus Inc on October 31, 2024 and sell it today you would earn a total of 50.00 from holding Arhaus Inc or generate 4.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Arhaus Inc vs. Lizhan Environmental
Performance |
| Timeline |
| Arhaus Inc |
| Lizhan Environmental |
Arhaus and Lizhan Environmental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Arhaus and Lizhan Environmental
The main advantage of trading using opposite Arhaus and Lizhan Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Arhaus position performs unexpectedly, Lizhan Environmental 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 Lizhan Environmental will offset losses from the drop in Lizhan Environmental's long position.| Arhaus vs. Floor Decor Holdings | Arhaus vs. Live Ventures | Arhaus vs. Haverty Furniture Companies | Arhaus vs. Home Depot |
| Lizhan Environmental vs. Sealed Air | Lizhan Environmental vs. NL Industries | Lizhan Environmental vs. Chemours Co | Lizhan Environmental vs. GE Vernova LLC |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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