Correlation Between E Xim and Lubelski Wegiel
Can any of the company-specific risk be diversified away by investing in both E Xim and Lubelski Wegiel 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 E Xim and Lubelski Wegiel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between E Xim IT and Lubelski Wegiel Bogdanka, you can compare the effects of market volatilities on E Xim and Lubelski Wegiel 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 E Xim with a short position of Lubelski Wegiel. Check out your portfolio center. Please also check ongoing floating volatility patterns of E Xim and Lubelski Wegiel.
Diversification Opportunities for E Xim and Lubelski Wegiel
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between EXM and Lubelski is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding E Xim IT and Lubelski Wegiel Bogdanka in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lubelski Wegiel Bogdanka and E Xim 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 E Xim IT are associated (or correlated) with Lubelski Wegiel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lubelski Wegiel Bogdanka has no effect on the direction of E Xim i.e., E Xim and Lubelski Wegiel go up and down completely randomly.
Pair Corralation between E Xim and Lubelski Wegiel
Assuming the 90 days trading horizon E Xim IT is expected to generate 1.5 times more return on investment than Lubelski Wegiel. However, E Xim is 1.5 times more volatile than Lubelski Wegiel Bogdanka. It trades about 0.39 of its potential returns per unit of risk. Lubelski Wegiel Bogdanka is currently generating about 0.14 per unit of risk. If you would invest 14,500 in E Xim IT on September 5, 2024 and sell it today you would earn a total of 2,500 from holding E Xim IT or generate 17.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 54.55% |
| Values | Daily Returns |
E Xim IT vs. Lubelski Wegiel Bogdanka
Performance |
| Timeline |
| E Xim IT |
| Lubelski Wegiel Bogdanka |
E Xim and Lubelski Wegiel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with E Xim and Lubelski Wegiel
The main advantage of trading using opposite E Xim and Lubelski Wegiel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if E Xim position performs unexpectedly, Lubelski Wegiel 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 Lubelski Wegiel will offset losses from the drop in Lubelski Wegiel's long position.The idea behind E Xim IT and Lubelski Wegiel Bogdanka pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Lubelski Wegiel vs. Clean Carbon Energy | Lubelski Wegiel vs. Vercom SA | Lubelski Wegiel vs. CFI Holding SA | Lubelski Wegiel vs. Gobarto 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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