Correlation Between Lithia Motors and Apogee Therapeutics,
Can any of the company-specific risk be diversified away by investing in both Lithia Motors and Apogee Therapeutics, 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 Lithia Motors and Apogee Therapeutics, into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lithia Motors and Apogee Therapeutics, Common, you can compare the effects of market volatilities on Lithia Motors and Apogee Therapeutics, 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 Lithia Motors with a short position of Apogee Therapeutics,. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lithia Motors and Apogee Therapeutics,.
Diversification Opportunities for Lithia Motors and Apogee Therapeutics,
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Lithia and Apogee is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Lithia Motors and Apogee Therapeutics, Common in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apogee Therapeutics, and Lithia Motors 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 Lithia Motors are associated (or correlated) with Apogee Therapeutics,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apogee Therapeutics, has no effect on the direction of Lithia Motors i.e., Lithia Motors and Apogee Therapeutics, go up and down completely randomly.
Pair Corralation between Lithia Motors and Apogee Therapeutics,
Considering the 90-day investment horizon Lithia Motors is expected to under-perform the Apogee Therapeutics,. But the stock apears to be less risky and, when comparing its historical volatility, Lithia Motors is 2.82 times less risky than Apogee Therapeutics,. The stock trades about -0.33 of its potential returns per unit of risk. The Apogee Therapeutics, Common is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 4,877 in Apogee Therapeutics, Common on October 12, 2024 and sell it today you would earn a total of 44.00 from holding Apogee Therapeutics, Common or generate 0.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lithia Motors vs. Apogee Therapeutics, Common
Performance |
| Timeline |
| Lithia Motors |
| Apogee Therapeutics, |
Lithia Motors and Apogee Therapeutics, Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lithia Motors and Apogee Therapeutics,
The main advantage of trading using opposite Lithia Motors and Apogee Therapeutics, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lithia Motors position performs unexpectedly, Apogee Therapeutics, 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 Apogee Therapeutics, will offset losses from the drop in Apogee Therapeutics,'s long position.| Lithia Motors vs. Sonic Automotive | Lithia Motors vs. AutoNation | Lithia Motors vs. Asbury Automotive Group | Lithia Motors vs. Penske Automotive Group |
| Apogee Therapeutics, vs. Lithia Motors | Apogee Therapeutics, vs. MOGU Inc | Apogee Therapeutics, vs. Paysafe | Apogee Therapeutics, vs. Albertsons Companies |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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