Correlation Between Gap, and Lucid
Can any of the company-specific risk be diversified away by investing in both Gap, and Lucid 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 Gap, and Lucid into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Gap, and Lucid Group, you can compare the effects of market volatilities on Gap, and Lucid 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 Gap, with a short position of Lucid. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gap, and Lucid.
Diversification Opportunities for Gap, and Lucid
Very good diversification
The 3 months correlation between Gap, and Lucid is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding The Gap, and Lucid Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lucid Group and Gap, 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 The Gap, are associated (or correlated) with Lucid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lucid Group has no effect on the direction of Gap, i.e., Gap, and Lucid go up and down completely randomly.
Pair Corralation between Gap, and Lucid
Considering the 90-day investment horizon The Gap, is expected to generate 0.96 times more return on investment than Lucid. However, The Gap, is 1.04 times less risky than Lucid. It trades about 0.18 of its potential returns per unit of risk. Lucid Group is currently generating about -0.02 per unit of risk. If you would invest 2,161 in The Gap, on September 3, 2024 and sell it today you would earn a total of 264.00 from holding The Gap, or generate 12.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Gap, vs. Lucid Group
Performance |
| Timeline |
| Gap, |
| Lucid Group |
Gap, and Lucid Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gap, and Lucid
The main advantage of trading using opposite Gap, and Lucid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gap, position performs unexpectedly, Lucid 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 Lucid will offset losses from the drop in Lucid's long position.| Gap, vs. Centessa Pharmaceuticals PLC | Gap, vs. Kandi Technologies Group | Gap, vs. Digi International | Gap, vs. Reservoir Media |
| Lucid vs. GreenPower Motor | Lucid vs. ZEEKR Intelligent Technology | Lucid vs. Volcon Inc | Lucid vs. Ford Motor |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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