Correlation Between LG Battery and Expat Serbia
Can any of the company-specific risk be diversified away by investing in both LG Battery and Expat Serbia 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 LG Battery and Expat Serbia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LG Battery Value Chain and Expat Serbia Belex15, you can compare the effects of market volatilities on LG Battery and Expat Serbia 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 LG Battery with a short position of Expat Serbia. Check out your portfolio center. Please also check ongoing floating volatility patterns of LG Battery and Expat Serbia.
Diversification Opportunities for LG Battery and Expat Serbia
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BATE and Expat is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding LG Battery Value Chain and Expat Serbia Belex15 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Expat Serbia Belex15 and LG Battery 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 LG Battery Value Chain are associated (or correlated) with Expat Serbia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Expat Serbia Belex15 has no effect on the direction of LG Battery i.e., LG Battery and Expat Serbia go up and down completely randomly.
Pair Corralation between LG Battery and Expat Serbia
Assuming the 90 days trading horizon LG Battery Value Chain is expected to generate 0.74 times more return on investment than Expat Serbia. However, LG Battery Value Chain is 1.35 times less risky than Expat Serbia. It trades about 0.09 of its potential returns per unit of risk. Expat Serbia Belex15 is currently generating about -0.06 per unit of risk. If you would invest 1,579 in LG Battery Value Chain on October 26, 2024 and sell it today you would earn a total of 104.00 from holding LG Battery Value Chain or generate 6.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
LG Battery Value Chain vs. Expat Serbia Belex15
Performance |
| Timeline |
| LG Battery Value |
| Expat Serbia Belex15 |
LG Battery and Expat Serbia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LG Battery and Expat Serbia
The main advantage of trading using opposite LG Battery and Expat Serbia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LG Battery position performs unexpectedly, Expat Serbia 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 Expat Serbia will offset losses from the drop in Expat Serbia's long position.| LG Battery vs. UBS Fund Solutions | LG Battery vs. Xtrackers II | LG Battery vs. Xtrackers Nikkei 225 | LG Battery vs. iShares VII PLC |
| Expat Serbia vs. Expat Czech PX | Expat Serbia vs. Expat Croatia Crobex | Expat Serbia vs. Expat Poland WIG20 | Expat Serbia vs. Expat Slovenia SBI |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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