Correlation Between Impax Asset and Liontrust Asset
Can any of the company-specific risk be diversified away by investing in both Impax Asset and Liontrust Asset 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 Impax Asset and Liontrust Asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Impax Asset Management and Liontrust Asset Management, you can compare the effects of market volatilities on Impax Asset and Liontrust Asset 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 Impax Asset with a short position of Liontrust Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Impax Asset and Liontrust Asset.
Diversification Opportunities for Impax Asset and Liontrust Asset
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Impax and Liontrust is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Impax Asset Management and Liontrust Asset Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Liontrust Asset Mana and Impax Asset 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 Impax Asset Management are associated (or correlated) with Liontrust Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Liontrust Asset Mana has no effect on the direction of Impax Asset i.e., Impax Asset and Liontrust Asset go up and down completely randomly.
Pair Corralation between Impax Asset and Liontrust Asset
Assuming the 90 days trading horizon Impax Asset Management is expected to under-perform the Liontrust Asset. In addition to that, Impax Asset is 1.14 times more volatile than Liontrust Asset Management. It trades about -0.04 of its total potential returns per unit of risk. Liontrust Asset Management is currently generating about -0.04 per unit of volatility. If you would invest 84,643 in Liontrust Asset Management on August 29, 2024 and sell it today you would lose (38,143) from holding Liontrust Asset Management or give up 45.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Impax Asset Management vs. Liontrust Asset Management
Performance |
| Timeline |
| Impax Asset Management |
| Liontrust Asset Mana |
Impax Asset and Liontrust Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Impax Asset and Liontrust Asset
The main advantage of trading using opposite Impax Asset and Liontrust Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Impax Asset position performs unexpectedly, Liontrust Asset 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 Liontrust Asset will offset losses from the drop in Liontrust Asset's long position.| Impax Asset vs. Toyota Motor Corp | Impax Asset vs. CATCo Reinsurance Opportunities | Impax Asset vs. Lendinvest PLC | Impax Asset vs. Neometals |
| Liontrust Asset vs. Toyota Motor Corp | Liontrust Asset vs. CATCo Reinsurance Opportunities | Liontrust Asset vs. Lendinvest PLC | Liontrust Asset vs. Neometals |
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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