Correlation Between LBG Media and United States
Can any of the company-specific risk be diversified away by investing in both LBG Media and United States 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 LBG Media and United States into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LBG Media PLC and United States Steel, you can compare the effects of market volatilities on LBG Media and United States 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 LBG Media with a short position of United States. Check out your portfolio center. Please also check ongoing floating volatility patterns of LBG Media and United States.
Diversification Opportunities for LBG Media and United States
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between LBG and United is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding LBG Media PLC and United States Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on United States Steel and LBG Media 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 LBG Media PLC are associated (or correlated) with United States. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of United States Steel has no effect on the direction of LBG Media i.e., LBG Media and United States go up and down completely randomly.
Pair Corralation between LBG Media and United States
Assuming the 90 days trading horizon LBG Media PLC is expected to generate 0.82 times more return on investment than United States. However, LBG Media PLC is 1.22 times less risky than United States. It trades about 0.07 of its potential returns per unit of risk. United States Steel is currently generating about 0.03 per unit of risk. If you would invest 7,480 in LBG Media PLC on October 16, 2024 and sell it today you would earn a total of 5,420 from holding LBG Media PLC or generate 72.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.43% |
| Values | Daily Returns |
LBG Media PLC vs. United States Steel
Performance |
| Timeline |
| LBG Media PLC |
| United States Steel |
LBG Media and United States Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LBG Media and United States
The main advantage of trading using opposite LBG Media and United States positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LBG Media position performs unexpectedly, United States 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 United States will offset losses from the drop in United States' long position.| LBG Media vs. Herald Investment Trust | LBG Media vs. Hecla Mining Co | LBG Media vs. BlackRock Frontiers Investment | LBG Media vs. Pan American Silver |
| United States vs. JB Hunt Transport | United States vs. Guild Esports Plc | United States vs. Centaur Media | United States vs. LBG Media PLC |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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