Correlation Between Innovativ Media and Lightspeed Commerce
Can any of the company-specific risk be diversified away by investing in both Innovativ Media and Lightspeed Commerce 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 Innovativ Media and Lightspeed Commerce into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Innovativ Media Group and Lightspeed Commerce, you can compare the effects of market volatilities on Innovativ Media and Lightspeed Commerce 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 Innovativ Media with a short position of Lightspeed Commerce. Check out your portfolio center. Please also check ongoing floating volatility patterns of Innovativ Media and Lightspeed Commerce.
Diversification Opportunities for Innovativ Media and Lightspeed Commerce
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Innovativ and Lightspeed is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Innovativ Media Group and Lightspeed Commerce in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lightspeed Commerce and Innovativ Media 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 Innovativ Media Group are associated (or correlated) with Lightspeed Commerce. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lightspeed Commerce has no effect on the direction of Innovativ Media i.e., Innovativ Media and Lightspeed Commerce go up and down completely randomly.
Pair Corralation between Innovativ Media and Lightspeed Commerce
If you would invest 1,493 in Lightspeed Commerce on August 28, 2024 and sell it today you would earn a total of 293.00 from holding Lightspeed Commerce or generate 19.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Innovativ Media Group vs. Lightspeed Commerce
Performance |
| Timeline |
| Innovativ Media Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Lightspeed Commerce |
Innovativ Media and Lightspeed Commerce Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Innovativ Media and Lightspeed Commerce
The main advantage of trading using opposite Innovativ Media and Lightspeed Commerce positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Innovativ Media position performs unexpectedly, Lightspeed Commerce 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 Lightspeed Commerce will offset losses from the drop in Lightspeed Commerce's long position.| Innovativ Media vs. FutureWorld Corp | Innovativ Media vs. Valeo Pharma | Innovativ Media vs. Now Corp | Innovativ Media vs. Vext Science |
| Lightspeed Commerce vs. Snowflake | Lightspeed Commerce vs. Zoom Video Communications | Lightspeed Commerce vs. C3 Ai Inc | Lightspeed Commerce vs. Trade Desk |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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