Correlation Between Commerce Planet and Luxfer Holdings
Can any of the company-specific risk be diversified away by investing in both Commerce Planet and Luxfer Holdings 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 Commerce Planet and Luxfer Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Commerce Planet and Luxfer Holdings PLC, you can compare the effects of market volatilities on Commerce Planet and Luxfer Holdings 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 Commerce Planet with a short position of Luxfer Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Commerce Planet and Luxfer Holdings.
Diversification Opportunities for Commerce Planet and Luxfer Holdings
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Commerce and Luxfer is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Commerce Planet and Luxfer Holdings PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Luxfer Holdings PLC and Commerce Planet 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 Commerce Planet are associated (or correlated) with Luxfer Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Luxfer Holdings PLC has no effect on the direction of Commerce Planet i.e., Commerce Planet and Luxfer Holdings go up and down completely randomly.
Pair Corralation between Commerce Planet and Luxfer Holdings
If you would invest 1,116 in Luxfer Holdings PLC on September 19, 2024 and sell it today you would earn a total of 258.00 from holding Luxfer Holdings PLC or generate 23.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Commerce Planet vs. Luxfer Holdings PLC
Performance |
| Timeline |
| Commerce Planet |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Luxfer Holdings PLC |
Commerce Planet and Luxfer Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Commerce Planet and Luxfer Holdings
The main advantage of trading using opposite Commerce Planet and Luxfer Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Commerce Planet position performs unexpectedly, Luxfer Holdings 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 Luxfer Holdings will offset losses from the drop in Luxfer Holdings' long position.| Commerce Planet vs. Sealed Air | Commerce Planet vs. Cumulus Media Class | Commerce Planet vs. Luxfer Holdings PLC | Commerce Planet vs. Hudson Technologies |
| Luxfer Holdings vs. Graham | Luxfer Holdings vs. Enerpac Tool Group | Luxfer Holdings vs. Kadant Inc | Luxfer Holdings vs. Omega Flex |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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