Correlation Between Ramsay Générale and Lions Gate
Can any of the company-specific risk be diversified away by investing in both Ramsay Générale and Lions Gate 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 Ramsay Générale and Lions Gate into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ramsay Gnrale de and Lions Gate Entertainment, you can compare the effects of market volatilities on Ramsay Générale and Lions Gate 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 Ramsay Générale with a short position of Lions Gate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ramsay Générale and Lions Gate.
Diversification Opportunities for Ramsay Générale and Lions Gate
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Ramsay and Lions is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Ramsay Gnrale de and Lions Gate Entertainment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lions Gate Entertainment and Ramsay Générale 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 Ramsay Gnrale de are associated (or correlated) with Lions Gate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lions Gate Entertainment has no effect on the direction of Ramsay Générale i.e., Ramsay Générale and Lions Gate go up and down completely randomly.
Pair Corralation between Ramsay Générale and Lions Gate
Assuming the 90 days horizon Ramsay Gnrale de is expected to under-perform the Lions Gate. But the stock apears to be less risky and, when comparing its historical volatility, Ramsay Gnrale de is 1.29 times less risky than Lions Gate. The stock trades about -0.07 of its potential returns per unit of risk. The Lions Gate Entertainment is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 830.00 in Lions Gate Entertainment on September 2, 2024 and sell it today you would lose (135.00) from holding Lions Gate Entertainment or give up 16.27% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ramsay Gnrale de vs. Lions Gate Entertainment
Performance |
| Timeline |
| Ramsay Gnrale de |
| Lions Gate Entertainment |
Ramsay Générale and Lions Gate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ramsay Générale and Lions Gate
The main advantage of trading using opposite Ramsay Générale and Lions Gate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ramsay Générale position performs unexpectedly, Lions Gate 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 Lions Gate will offset losses from the drop in Lions Gate's long position.| Ramsay Générale vs. Ramsay Health Care | Ramsay Générale vs. Zijin Mining Group | Ramsay Générale vs. Bumrungrad Hospital Public | Ramsay Générale vs. Sabra Health Care |
| Lions Gate vs. Wizz Air Holdings | Lions Gate vs. DELTA AIR LINES | Lions Gate vs. FORWARD AIR P | Lions Gate vs. ALTAIR RES INC |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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