Correlation Between LandBridge Company and Cango
Can any of the company-specific risk be diversified away by investing in both LandBridge Company and Cango 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 LandBridge Company and Cango into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LandBridge Company LLC and Cango Inc, you can compare the effects of market volatilities on LandBridge Company and Cango 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 LandBridge Company with a short position of Cango. Check out your portfolio center. Please also check ongoing floating volatility patterns of LandBridge Company and Cango.
Diversification Opportunities for LandBridge Company and Cango
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between LandBridge and Cango is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding LandBridge Company LLC and Cango Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cango Inc and LandBridge Company 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 LandBridge Company LLC are associated (or correlated) with Cango. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cango Inc has no effect on the direction of LandBridge Company i.e., LandBridge Company and Cango go up and down completely randomly.
Pair Corralation between LandBridge Company and Cango
Allowing for the 90-day total investment horizon LandBridge Company LLC is expected to generate 1.18 times more return on investment than Cango. However, LandBridge Company is 1.18 times more volatile than Cango Inc. It trades about 0.27 of its potential returns per unit of risk. Cango Inc is currently generating about 0.08 per unit of risk. If you would invest 2,315 in LandBridge Company LLC on August 27, 2024 and sell it today you would earn a total of 5,431 from holding LandBridge Company LLC or generate 234.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 23.08% |
| Values | Daily Returns |
LandBridge Company LLC vs. Cango Inc
Performance |
| Timeline |
| LandBridge Company |
| Cango Inc |
LandBridge Company and Cango Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LandBridge Company and Cango
The main advantage of trading using opposite LandBridge Company and Cango positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LandBridge Company position performs unexpectedly, Cango 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 Cango will offset losses from the drop in Cango's long position.| LandBridge Company vs. FactSet Research Systems | LandBridge Company vs. FiscalNote Holdings | LandBridge Company vs. Getty Images Holdings | LandBridge Company vs. Mativ Holdings |
| Cango vs. Cars Inc | Cango vs. KAR Auction Services | Cango vs. Rush Enterprises B | Cango vs. Rush Enterprises A |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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