Correlation Between Grab Holdings and Lilium Equity
Can any of the company-specific risk be diversified away by investing in both Grab Holdings and Lilium Equity 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 Grab Holdings and Lilium Equity into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grab Holdings Limited and Lilium Equity Warrants, you can compare the effects of market volatilities on Grab Holdings and Lilium Equity 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 Grab Holdings with a short position of Lilium Equity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grab Holdings and Lilium Equity.
Diversification Opportunities for Grab Holdings and Lilium Equity
-0.84 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Grab and Lilium is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding Grab Holdings Limited and Lilium Equity Warrants in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lilium Equity Warrants and Grab Holdings 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 Grab Holdings Limited are associated (or correlated) with Lilium Equity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lilium Equity Warrants has no effect on the direction of Grab Holdings i.e., Grab Holdings and Lilium Equity go up and down completely randomly.
Pair Corralation between Grab Holdings and Lilium Equity
Assuming the 90 days horizon Grab Holdings Limited is expected to generate 0.61 times more return on investment than Lilium Equity. However, Grab Holdings Limited is 1.63 times less risky than Lilium Equity. It trades about 0.23 of its potential returns per unit of risk. Lilium Equity Warrants is currently generating about -0.58 per unit of risk. If you would invest 31.00 in Grab Holdings Limited on August 30, 2024 and sell it today you would earn a total of 17.00 from holding Grab Holdings Limited or generate 54.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 36.36% |
| Values | Daily Returns |
Grab Holdings Limited vs. Lilium Equity Warrants
Performance |
| Timeline |
| Grab Holdings Limited |
| Lilium Equity Warrants |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Grab Holdings and Lilium Equity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grab Holdings and Lilium Equity
The main advantage of trading using opposite Grab Holdings and Lilium Equity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grab Holdings position performs unexpectedly, Lilium Equity 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 Lilium Equity will offset losses from the drop in Lilium Equity's long position.| Grab Holdings vs. Grab Holdings | Grab Holdings vs. EVgo Equity Warrants | Grab Holdings vs. Bakkt Holdings Warrant |
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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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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