Correlation Between Job Solution and LL Lucky
Can any of the company-specific risk be diversified away by investing in both Job Solution and LL Lucky 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 Job Solution and LL Lucky into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Job Solution Sweden and LL Lucky Games, you can compare the effects of market volatilities on Job Solution and LL Lucky 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 Job Solution with a short position of LL Lucky. Check out your portfolio center. Please also check ongoing floating volatility patterns of Job Solution and LL Lucky.
Diversification Opportunities for Job Solution and LL Lucky
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Job and LADYLU is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Job Solution Sweden and LL Lucky Games in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LL Lucky Games and Job Solution 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 Job Solution Sweden are associated (or correlated) with LL Lucky. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LL Lucky Games has no effect on the direction of Job Solution i.e., Job Solution and LL Lucky go up and down completely randomly.
Pair Corralation between Job Solution and LL Lucky
Assuming the 90 days trading horizon Job Solution Sweden is expected to under-perform the LL Lucky. But the stock apears to be less risky and, when comparing its historical volatility, Job Solution Sweden is 3.66 times less risky than LL Lucky. The stock trades about -0.15 of its potential returns per unit of risk. The LL Lucky Games is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 36.00 in LL Lucky Games on August 30, 2024 and sell it today you would earn a total of 15.00 from holding LL Lucky Games or generate 41.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Job Solution Sweden vs. LL Lucky Games
Performance |
| Timeline |
| Job Solution Sweden |
| LL Lucky Games |
Job Solution and LL Lucky Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Job Solution and LL Lucky
The main advantage of trading using opposite Job Solution and LL Lucky positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Job Solution position performs unexpectedly, LL Lucky 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 LL Lucky will offset losses from the drop in LL Lucky's long position.| Job Solution vs. LL Lucky Games | Job Solution vs. DevPort AB | Job Solution vs. Waystream Holding AB | Job Solution vs. Inwido AB |
| LL Lucky vs. Flexion Mobile PLC | LL Lucky vs. Stillfront Group AB | LL Lucky vs. iZafe Group AB | LL Lucky vs. KABE Group AB |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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