Correlation Between Cardiff Lexington and 4 Less
Can any of the company-specific risk be diversified away by investing in both Cardiff Lexington and 4 Less 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 Cardiff Lexington and 4 Less into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cardiff Lexington Corp and 4 Less Group, you can compare the effects of market volatilities on Cardiff Lexington and 4 Less 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 Cardiff Lexington with a short position of 4 Less. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cardiff Lexington and 4 Less.
Diversification Opportunities for Cardiff Lexington and 4 Less
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Cardiff and FLES is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Cardiff Lexington Corp and 4 Less Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 4 Less Group and Cardiff Lexington 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 Cardiff Lexington Corp are associated (or correlated) with 4 Less. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 4 Less Group has no effect on the direction of Cardiff Lexington i.e., Cardiff Lexington and 4 Less go up and down completely randomly.
Pair Corralation between Cardiff Lexington and 4 Less
Given the investment horizon of 90 days Cardiff Lexington Corp is expected to generate 1.19 times more return on investment than 4 Less. However, Cardiff Lexington is 1.19 times more volatile than 4 Less Group. It trades about 0.1 of its potential returns per unit of risk. 4 Less Group is currently generating about 0.09 per unit of risk. If you would invest 700.00 in Cardiff Lexington Corp on August 28, 2024 and sell it today you would lose (50.00) from holding Cardiff Lexington Corp or give up 7.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Cardiff Lexington Corp vs. 4 Less Group
Performance |
| Timeline |
| Cardiff Lexington Corp |
| 4 Less Group |
Cardiff Lexington and 4 Less Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cardiff Lexington and 4 Less
The main advantage of trading using opposite Cardiff Lexington and 4 Less positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cardiff Lexington position performs unexpectedly, 4 Less 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 4 Less will offset losses from the drop in 4 Less' long position.| Cardiff Lexington vs. Blackstone Group | Cardiff Lexington vs. BlackRock | Cardiff Lexington vs. Apollo Global Management | Cardiff Lexington vs. Bank of New |
| 4 Less vs. Allison Transmission Holdings | 4 Less vs. Luminar Technologies | 4 Less vs. Lear Corporation | 4 Less vs. BorgWarner |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |