Correlation Between Credit Acceptance and Lloyds Banking
Can any of the company-specific risk be diversified away by investing in both Credit Acceptance and Lloyds Banking 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 Credit Acceptance and Lloyds Banking into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Credit Acceptance and Lloyds Banking Group, you can compare the effects of market volatilities on Credit Acceptance and Lloyds Banking 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 Credit Acceptance with a short position of Lloyds Banking. Check out your portfolio center. Please also check ongoing floating volatility patterns of Credit Acceptance and Lloyds Banking.
Diversification Opportunities for Credit Acceptance and Lloyds Banking
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Credit and Lloyds is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Credit Acceptance and Lloyds Banking Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lloyds Banking Group and Credit Acceptance 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 Credit Acceptance are associated (or correlated) with Lloyds Banking. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lloyds Banking Group has no effect on the direction of Credit Acceptance i.e., Credit Acceptance and Lloyds Banking go up and down completely randomly.
Pair Corralation between Credit Acceptance and Lloyds Banking
If you would invest 32,500 in Credit Acceptance on September 2, 2024 and sell it today you would earn a total of 0.00 from holding Credit Acceptance or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Credit Acceptance vs. Lloyds Banking Group
Performance |
| Timeline |
| Credit Acceptance |
| Lloyds Banking Group |
Credit Acceptance and Lloyds Banking Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Credit Acceptance and Lloyds Banking
The main advantage of trading using opposite Credit Acceptance and Lloyds Banking positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Credit Acceptance position performs unexpectedly, Lloyds Banking 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 Lloyds Banking will offset losses from the drop in Lloyds Banking's long position.| Credit Acceptance vs. Prudential Financial | Credit Acceptance vs. Deutsche Bank Aktiengesellschaft | Credit Acceptance vs. Hospital Mater Dei | Credit Acceptance vs. salesforce inc |
| Lloyds Banking vs. Marvell Technology | Lloyds Banking vs. Apartment Investment and | Lloyds Banking vs. Unity Software | Lloyds Banking vs. Micron Technology |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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