Correlation Between Dolphin Entertainment and Lumen Technologies
Can any of the company-specific risk be diversified away by investing in both Dolphin Entertainment and Lumen Technologies 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 Dolphin Entertainment and Lumen Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dolphin Entertainment and Lumen Technologies, you can compare the effects of market volatilities on Dolphin Entertainment and Lumen Technologies 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 Dolphin Entertainment with a short position of Lumen Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dolphin Entertainment and Lumen Technologies.
Diversification Opportunities for Dolphin Entertainment and Lumen Technologies
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Dolphin and Lumen is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Dolphin Entertainment and Lumen Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lumen Technologies and Dolphin Entertainment 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 Dolphin Entertainment are associated (or correlated) with Lumen Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lumen Technologies has no effect on the direction of Dolphin Entertainment i.e., Dolphin Entertainment and Lumen Technologies go up and down completely randomly.
Pair Corralation between Dolphin Entertainment and Lumen Technologies
Given the investment horizon of 90 days Dolphin Entertainment is expected to under-perform the Lumen Technologies. But the stock apears to be less risky and, when comparing its historical volatility, Dolphin Entertainment is 1.68 times less risky than Lumen Technologies. The stock trades about -0.16 of its potential returns per unit of risk. The Lumen Technologies is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 660.00 in Lumen Technologies on August 30, 2024 and sell it today you would earn a total of 77.00 from holding Lumen Technologies or generate 11.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dolphin Entertainment vs. Lumen Technologies
Performance |
| Timeline |
| Dolphin Entertainment |
| Lumen Technologies |
Dolphin Entertainment and Lumen Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dolphin Entertainment and Lumen Technologies
The main advantage of trading using opposite Dolphin Entertainment and Lumen Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dolphin Entertainment position performs unexpectedly, Lumen Technologies 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 Lumen Technologies will offset losses from the drop in Lumen Technologies' long position.| Dolphin Entertainment vs. Hall of Fame | Dolphin Entertainment vs. Wisekey International Holding | Dolphin Entertainment vs. Oriental Culture Holding |
| Lumen Technologies vs. T Mobile | Lumen Technologies vs. Comcast Corp | Lumen Technologies vs. Charter Communications | Lumen Technologies vs. Vodafone Group PLC |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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