Correlation Between Claranova and Lumibird
Can any of the company-specific risk be diversified away by investing in both Claranova 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 Claranova and Lumibird into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Claranova SE and Lumibird SA, you can compare the effects of market volatilities on Claranova 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 Claranova with a short position of Lumibird. Check out your portfolio center. Please also check ongoing floating volatility patterns of Claranova and Lumibird.
Diversification Opportunities for Claranova and Lumibird
Significant diversification
The 3 months correlation between Claranova and Lumibird is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Claranova SE and Lumibird SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lumibird SA and Claranova 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 Claranova SE 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 Claranova i.e., Claranova and Lumibird go up and down completely randomly.
Pair Corralation between Claranova and Lumibird
Assuming the 90 days trading horizon Claranova SE is expected to under-perform the Lumibird. In addition to that, Claranova is 1.28 times more volatile than Lumibird SA. It trades about -0.03 of its total potential returns per unit of risk. Lumibird SA is currently generating about -0.03 per unit of volatility. If you would invest 1,542 in Lumibird SA on September 3, 2024 and sell it today you would lose (612.00) from holding Lumibird SA or give up 39.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Claranova SE vs. Lumibird SA
Performance |
| Timeline |
| Claranova SE |
| Lumibird SA |
Claranova and Lumibird Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Claranova and Lumibird
The main advantage of trading using opposite Claranova and Lumibird positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Claranova 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.| Claranova vs. Solutions 30 SE | Claranova vs. BigBen Interactive | Claranova vs. SA Catana Group | Claranova vs. Solocal Group SA |
| Lumibird vs. Esker SA | Lumibird vs. Xilam Animation | Lumibird vs. Claranova SE | Lumibird vs. Prodways Group 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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