Correlation Between Global Technology and Luxfer Holdings
Can any of the company-specific risk be diversified away by investing in both Global Technology and Luxfer Holdings 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 Global Technology and Luxfer Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global Technology Acquisition and Luxfer Holdings PLC, you can compare the effects of market volatilities on Global Technology and Luxfer Holdings 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 Global Technology with a short position of Luxfer Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Technology and Luxfer Holdings.
Diversification Opportunities for Global Technology and Luxfer Holdings
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Global and Luxfer is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Global Technology Acquisition and Luxfer Holdings PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Luxfer Holdings PLC and Global Technology 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 Global Technology Acquisition are associated (or correlated) with Luxfer Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Luxfer Holdings PLC has no effect on the direction of Global Technology i.e., Global Technology and Luxfer Holdings go up and down completely randomly.
Pair Corralation between Global Technology and Luxfer Holdings
If you would invest 1,147 in Global Technology Acquisition on September 13, 2024 and sell it today you would earn a total of 0.00 from holding Global Technology Acquisition or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Global Technology Acquisition vs. Luxfer Holdings PLC
Performance |
| Timeline |
| Global Technology |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
| Luxfer Holdings PLC |
Global Technology and Luxfer Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Technology and Luxfer Holdings
The main advantage of trading using opposite Global Technology and Luxfer Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Technology position performs unexpectedly, Luxfer Holdings 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 Luxfer Holdings will offset losses from the drop in Luxfer Holdings' long position.| Global Technology vs. Cheniere Energy Partners | Global Technology vs. Analog Devices | Global Technology vs. Alliant Energy Corp | Global Technology vs. Empresa Distribuidora y |
| Luxfer Holdings vs. Graham | Luxfer Holdings vs. Enerpac Tool Group | Luxfer Holdings vs. Kadant Inc | Luxfer Holdings vs. Omega Flex |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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