Correlation Between AGAPE GLOBAL and LUX ISLAND
Can any of the company-specific risk be diversified away by investing in both AGAPE GLOBAL and LUX ISLAND 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 AGAPE GLOBAL and LUX ISLAND into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AGAPE GLOBAL INVESTMENTS and LUX ISLAND RESORTS, you can compare the effects of market volatilities on AGAPE GLOBAL and LUX ISLAND 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 AGAPE GLOBAL with a short position of LUX ISLAND. Check out your portfolio center. Please also check ongoing floating volatility patterns of AGAPE GLOBAL and LUX ISLAND.
Diversification Opportunities for AGAPE GLOBAL and LUX ISLAND
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AGAPE and LUX is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AGAPE GLOBAL INVESTMENTS and LUX ISLAND RESORTS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LUX ISLAND RESORTS and AGAPE 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 AGAPE GLOBAL INVESTMENTS are associated (or correlated) with LUX ISLAND. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LUX ISLAND RESORTS has no effect on the direction of AGAPE GLOBAL i.e., AGAPE GLOBAL and LUX ISLAND go up and down completely randomly.
Pair Corralation between AGAPE GLOBAL and LUX ISLAND
Assuming the 90 days trading horizon AGAPE GLOBAL INVESTMENTS is expected to under-perform the LUX ISLAND. But the stock apears to be less risky and, when comparing its historical volatility, AGAPE GLOBAL INVESTMENTS is 1.1 times less risky than LUX ISLAND. The stock trades about -0.07 of its potential returns per unit of risk. The LUX ISLAND RESORTS is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 4,683 in LUX ISLAND RESORTS on September 14, 2024 and sell it today you would earn a total of 617.00 from holding LUX ISLAND RESORTS or generate 13.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 77.63% |
| Values | Daily Returns |
AGAPE GLOBAL INVESTMENTS vs. LUX ISLAND RESORTS
Performance |
| Timeline |
| AGAPE GLOBAL INVESTMENTS |
| LUX ISLAND RESORTS |
AGAPE GLOBAL and LUX ISLAND Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AGAPE GLOBAL and LUX ISLAND
The main advantage of trading using opposite AGAPE GLOBAL and LUX ISLAND positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AGAPE GLOBAL position performs unexpectedly, LUX ISLAND 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 LUX ISLAND will offset losses from the drop in LUX ISLAND's long position.| AGAPE GLOBAL vs. UNITED INVESTMENTS LTD | AGAPE GLOBAL vs. FINCORP INVESTMENT LTD | AGAPE GLOBAL vs. CAVELL TOURISTIC INVESTMENTS | AGAPE GLOBAL vs. ASTORIA INVESTMENT LTD |
| LUX ISLAND vs. AGAPE GLOBAL INVESTMENTS | LUX ISLAND vs. AFRICA CLEAN ENERGY | LUX ISLAND vs. FINCORP INVESTMENT LTD | LUX ISLAND vs. PHOENIX INVESTMENT PANY |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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