Correlation Between AMTD Digital and LYFT
Can any of the company-specific risk be diversified away by investing in both AMTD Digital and LYFT 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 AMTD Digital and LYFT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AMTD Digital and LYFT Inc, you can compare the effects of market volatilities on AMTD Digital and LYFT 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 AMTD Digital with a short position of LYFT. Check out your portfolio center. Please also check ongoing floating volatility patterns of AMTD Digital and LYFT.
Diversification Opportunities for AMTD Digital and LYFT
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between AMTD and LYFT is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding AMTD Digital and LYFT Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LYFT Inc and AMTD Digital 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 AMTD Digital are associated (or correlated) with LYFT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LYFT Inc has no effect on the direction of AMTD Digital i.e., AMTD Digital and LYFT go up and down completely randomly.
Pair Corralation between AMTD Digital and LYFT
Considering the 90-day investment horizon AMTD Digital is expected to generate 0.9 times more return on investment than LYFT. However, AMTD Digital is 1.11 times less risky than LYFT. It trades about 0.11 of its potential returns per unit of risk. LYFT Inc is currently generating about -0.01 per unit of risk. If you would invest 258.00 in AMTD Digital on October 20, 2024 and sell it today you would earn a total of 13.00 from holding AMTD Digital or generate 5.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AMTD Digital vs. LYFT Inc
Performance |
| Timeline |
| AMTD Digital |
| LYFT Inc |
AMTD Digital and LYFT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AMTD Digital and LYFT
The main advantage of trading using opposite AMTD Digital and LYFT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AMTD Digital position performs unexpectedly, LYFT 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 LYFT will offset losses from the drop in LYFT's long position.| AMTD Digital vs. HeartCore Enterprises | AMTD Digital vs. Beamr Imaging Ltd | AMTD Digital vs. CXApp Inc | AMTD Digital vs. SoundHound AI |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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