Correlation Between HE Equipment and NK Lukoil
Can any of the company-specific risk be diversified away by investing in both HE Equipment and NK Lukoil 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 HE Equipment and NK Lukoil into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HE Equipment Services and NK Lukoil PAO, you can compare the effects of market volatilities on HE Equipment and NK Lukoil 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 HE Equipment with a short position of NK Lukoil. Check out your portfolio center. Please also check ongoing floating volatility patterns of HE Equipment and NK Lukoil.
Diversification Opportunities for HE Equipment and NK Lukoil
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between HEES and LUKOY is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding HE Equipment Services and NK Lukoil PAO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NK Lukoil PAO and HE Equipment 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 HE Equipment Services are associated (or correlated) with NK Lukoil. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NK Lukoil PAO has no effect on the direction of HE Equipment i.e., HE Equipment and NK Lukoil go up and down completely randomly.
Pair Corralation between HE Equipment and NK Lukoil
If you would invest 5,000 in HE Equipment Services on September 4, 2024 and sell it today you would earn a total of 835.00 from holding HE Equipment Services or generate 16.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
HE Equipment Services vs. NK Lukoil PAO
Performance |
| Timeline |
| HE Equipment Services |
| NK Lukoil PAO |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
HE Equipment and NK Lukoil Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HE Equipment and NK Lukoil
The main advantage of trading using opposite HE Equipment and NK Lukoil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HE Equipment position performs unexpectedly, NK Lukoil 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 NK Lukoil will offset losses from the drop in NK Lukoil's long position.| HE Equipment vs. GATX Corporation | HE Equipment vs. McGrath RentCorp | HE Equipment vs. Alta Equipment Group | HE Equipment vs. Ryder System |
| NK Lukoil vs. Willscot Mobile Mini | NK Lukoil vs. HE Equipment Services | NK Lukoil vs. Playtech plc | NK Lukoil vs. Sonida Senior Living |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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