Correlation Between OAKTRSPECLENDNEW and Lyft
Can any of the company-specific risk be diversified away by investing in both OAKTRSPECLENDNEW and Lyft 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 OAKTRSPECLENDNEW and Lyft into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OAKTRSPECLENDNEW and Lyft Inc, you can compare the effects of market volatilities on OAKTRSPECLENDNEW and Lyft 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 OAKTRSPECLENDNEW with a short position of Lyft. Check out your portfolio center. Please also check ongoing floating volatility patterns of OAKTRSPECLENDNEW and Lyft.
Diversification Opportunities for OAKTRSPECLENDNEW and Lyft
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between OAKTRSPECLENDNEW and Lyft is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding OAKTRSPECLENDNEW and Lyft Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lyft Inc and OAKTRSPECLENDNEW 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 OAKTRSPECLENDNEW are associated (or correlated) with Lyft. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lyft Inc has no effect on the direction of OAKTRSPECLENDNEW i.e., OAKTRSPECLENDNEW and Lyft go up and down completely randomly.
Pair Corralation between OAKTRSPECLENDNEW and Lyft
Assuming the 90 days trading horizon OAKTRSPECLENDNEW is expected to generate 0.34 times more return on investment than Lyft. However, OAKTRSPECLENDNEW is 2.92 times less risky than Lyft. It trades about 0.08 of its potential returns per unit of risk. Lyft Inc is currently generating about -0.21 per unit of risk. If you would invest 1,485 in OAKTRSPECLENDNEW on September 15, 2024 and sell it today you would earn a total of 34.00 from holding OAKTRSPECLENDNEW or generate 2.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
OAKTRSPECLENDNEW vs. Lyft Inc
Performance |
| Timeline |
| OAKTRSPECLENDNEW |
| Lyft Inc |
OAKTRSPECLENDNEW and Lyft Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OAKTRSPECLENDNEW and Lyft
The main advantage of trading using opposite OAKTRSPECLENDNEW and Lyft positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OAKTRSPECLENDNEW position performs unexpectedly, Lyft 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 Lyft will offset losses from the drop in Lyft's long position.| OAKTRSPECLENDNEW vs. Apple Inc | OAKTRSPECLENDNEW vs. Apple Inc | OAKTRSPECLENDNEW vs. Apple Inc | OAKTRSPECLENDNEW vs. Apple Inc |
| Lyft vs. OAKTRSPECLENDNEW | Lyft vs. The Hanover Insurance | Lyft vs. REVO INSURANCE SPA | Lyft vs. Tradegate AG Wertpapierhandelsbank |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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