Correlation Between Examobile and LSI Software
Can any of the company-specific risk be diversified away by investing in both Examobile and LSI Software 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 Examobile and LSI Software into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Examobile SA and LSI Software SA, you can compare the effects of market volatilities on Examobile and LSI Software 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 Examobile with a short position of LSI Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of Examobile and LSI Software.
Diversification Opportunities for Examobile and LSI Software
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Examobile and LSI is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Examobile SA and LSI Software SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LSI Software SA and Examobile 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 Examobile SA are associated (or correlated) with LSI Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LSI Software SA has no effect on the direction of Examobile i.e., Examobile and LSI Software go up and down completely randomly.
Pair Corralation between Examobile and LSI Software
Assuming the 90 days trading horizon Examobile is expected to generate 1.04 times less return on investment than LSI Software. In addition to that, Examobile is 1.69 times more volatile than LSI Software SA. It trades about 0.13 of its total potential returns per unit of risk. LSI Software SA is currently generating about 0.22 per unit of volatility. If you would invest 1,440 in LSI Software SA on September 22, 2024 and sell it today you would earn a total of 160.00 from holding LSI Software SA or generate 11.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 36.36% |
| Values | Daily Returns |
Examobile SA vs. LSI Software SA
Performance |
| Timeline |
| Examobile SA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Modest
| LSI Software SA |
Examobile and LSI Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Examobile and LSI Software
The main advantage of trading using opposite Examobile and LSI Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Examobile position performs unexpectedly, LSI Software 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 LSI Software will offset losses from the drop in LSI Software's long position.| Examobile vs. Skyline Investment SA | Examobile vs. Ultimate Games SA | Examobile vs. Play2Chill SA | Examobile vs. UF Games SA |
| LSI Software vs. Asseco Poland SA | LSI Software vs. Asseco Business Solutions | LSI Software vs. Quantum Software SA |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |