Correlation Between Entravision Communications and Luokung Technology
Can any of the company-specific risk be diversified away by investing in both Entravision Communications and Luokung Technology 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 Entravision Communications and Luokung Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Entravision Communications and Luokung Technology Corp, you can compare the effects of market volatilities on Entravision Communications and Luokung Technology 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 Entravision Communications with a short position of Luokung Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Entravision Communications and Luokung Technology.
Diversification Opportunities for Entravision Communications and Luokung Technology
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Entravision and Luokung is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Entravision Communications and Luokung Technology Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Luokung Technology Corp and Entravision Communications 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 Entravision Communications are associated (or correlated) with Luokung Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Luokung Technology Corp has no effect on the direction of Entravision Communications i.e., Entravision Communications and Luokung Technology go up and down completely randomly.
Pair Corralation between Entravision Communications and Luokung Technology
Considering the 90-day investment horizon Entravision Communications is expected to generate 0.63 times more return on investment than Luokung Technology. However, Entravision Communications is 1.59 times less risky than Luokung Technology. It trades about 0.12 of its potential returns per unit of risk. Luokung Technology Corp is currently generating about -0.04 per unit of risk. If you would invest 211.00 in Entravision Communications on September 13, 2024 and sell it today you would earn a total of 35.00 from holding Entravision Communications or generate 16.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Entravision Communications vs. Luokung Technology Corp
Performance |
| Timeline |
| Entravision Communications |
| Luokung Technology Corp |
Entravision Communications and Luokung Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Entravision Communications and Luokung Technology
The main advantage of trading using opposite Entravision Communications and Luokung Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Entravision Communications position performs unexpectedly, Luokung Technology 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 Luokung Technology will offset losses from the drop in Luokung Technology's long position.| Entravision Communications vs. Marchex | Entravision Communications vs. Direct Digital Holdings | Entravision Communications vs. Cimpress NV | Entravision Communications vs. Townsquare Media |
| Luokung Technology vs. Auddia Inc | Luokung Technology vs. Freight Technologies | Luokung Technology vs. CXApp Inc | Luokung Technology vs. Trust Stamp |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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