Correlation Between CT Global and Liontrust Asset
Can any of the company-specific risk be diversified away by investing in both CT Global and Liontrust Asset 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 CT Global and Liontrust Asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CT Global Managed and Liontrust Asset Management, you can compare the effects of market volatilities on CT Global and Liontrust Asset 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 CT Global with a short position of Liontrust Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of CT Global and Liontrust Asset.
Diversification Opportunities for CT Global and Liontrust Asset
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between CMPG and Liontrust is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding CT Global Managed and Liontrust Asset Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Liontrust Asset Mana and CT Global 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 CT Global Managed are associated (or correlated) with Liontrust Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Liontrust Asset Mana has no effect on the direction of CT Global i.e., CT Global and Liontrust Asset go up and down completely randomly.
Pair Corralation between CT Global and Liontrust Asset
Assuming the 90 days trading horizon CT Global Managed is expected to generate 0.14 times more return on investment than Liontrust Asset. However, CT Global Managed is 7.0 times less risky than Liontrust Asset. It trades about 0.15 of its potential returns per unit of risk. Liontrust Asset Management is currently generating about -0.02 per unit of risk. If you would invest 23,600 in CT Global Managed on November 3, 2024 and sell it today you would earn a total of 3,100 from holding CT Global Managed or generate 13.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CT Global Managed vs. Liontrust Asset Management
Performance |
| Timeline |
| CT Global Managed |
| Liontrust Asset Mana |
CT Global and Liontrust Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CT Global and Liontrust Asset
The main advantage of trading using opposite CT Global and Liontrust Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CT Global position performs unexpectedly, Liontrust Asset 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 Liontrust Asset will offset losses from the drop in Liontrust Asset's long position.| CT Global vs. Spotify Technology SA | CT Global vs. DXC Technology Co | CT Global vs. Hochschild Mining plc | CT Global vs. Take Two Interactive Software |
| Liontrust Asset vs. Endeavour Mining Corp | Liontrust Asset vs. European Metals Holdings | Liontrust Asset vs. One Media iP | Liontrust Asset vs. JD Sports Fashion |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |