Correlation Between Concrete Leveling and Lion Electric
Can any of the company-specific risk be diversified away by investing in both Concrete Leveling and Lion Electric 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 Concrete Leveling and Lion Electric into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Concrete Leveling Systems and Lion Electric Corp, you can compare the effects of market volatilities on Concrete Leveling and Lion Electric 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 Concrete Leveling with a short position of Lion Electric. Check out your portfolio center. Please also check ongoing floating volatility patterns of Concrete Leveling and Lion Electric.
Diversification Opportunities for Concrete Leveling and Lion Electric
-0.85 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Concrete and Lion is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding Concrete Leveling Systems and Lion Electric Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lion Electric Corp and Concrete Leveling 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 Concrete Leveling Systems are associated (or correlated) with Lion Electric. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lion Electric Corp has no effect on the direction of Concrete Leveling i.e., Concrete Leveling and Lion Electric go up and down completely randomly.
Pair Corralation between Concrete Leveling and Lion Electric
Given the investment horizon of 90 days Concrete Leveling Systems is expected to generate 3.78 times more return on investment than Lion Electric. However, Concrete Leveling is 3.78 times more volatile than Lion Electric Corp. It trades about 0.06 of its potential returns per unit of risk. Lion Electric Corp is currently generating about -0.08 per unit of risk. If you would invest 304.00 in Concrete Leveling Systems on August 26, 2024 and sell it today you would lose (240.00) from holding Concrete Leveling Systems or give up 78.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Concrete Leveling Systems vs. Lion Electric Corp
Performance |
| Timeline |
| Concrete Leveling Systems |
| Lion Electric Corp |
Concrete Leveling and Lion Electric Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Concrete Leveling and Lion Electric
The main advantage of trading using opposite Concrete Leveling and Lion Electric positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Concrete Leveling position performs unexpectedly, Lion Electric 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 Lion Electric will offset losses from the drop in Lion Electric's long position.| Concrete Leveling vs. Lion Electric Corp | Concrete Leveling vs. Nikola Corp | Concrete Leveling vs. Buhler Industries | Concrete Leveling vs. Toyota Industries |
| Lion Electric vs. Xos Inc | Lion Electric vs. Nikola Corp | Lion Electric vs. Wabash National | Lion Electric vs. American Premium Water |
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.
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