Correlation Between Lepanto Consolidated and International Container
Can any of the company-specific risk be diversified away by investing in both Lepanto Consolidated and International Container 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 Lepanto Consolidated and International Container into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lepanto Consolidated Mining and International Container Terminal, you can compare the effects of market volatilities on Lepanto Consolidated and International Container 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 Lepanto Consolidated with a short position of International Container. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lepanto Consolidated and International Container.
Diversification Opportunities for Lepanto Consolidated and International Container
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Lepanto and International is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Lepanto Consolidated Mining and International Container Termin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on International Container and Lepanto Consolidated 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 Lepanto Consolidated Mining are associated (or correlated) with International Container. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of International Container has no effect on the direction of Lepanto Consolidated i.e., Lepanto Consolidated and International Container go up and down completely randomly.
Pair Corralation between Lepanto Consolidated and International Container
Assuming the 90 days trading horizon Lepanto Consolidated Mining is expected to under-perform the International Container. In addition to that, Lepanto Consolidated is 1.59 times more volatile than International Container Terminal. It trades about -0.19 of its total potential returns per unit of risk. International Container Terminal is currently generating about 0.07 per unit of volatility. If you would invest 38,020 in International Container Terminal on September 13, 2024 and sell it today you would earn a total of 1,480 from holding International Container Terminal or generate 3.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Lepanto Consolidated Mining vs. International Container Termin
Performance |
| Timeline |
| Lepanto Consolidated |
| International Container |
Lepanto Consolidated and International Container Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lepanto Consolidated and International Container
The main advantage of trading using opposite Lepanto Consolidated and International Container positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lepanto Consolidated position performs unexpectedly, International Container 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 International Container will offset losses from the drop in International Container's long position.| Lepanto Consolidated vs. Top Frontier Investment | Lepanto Consolidated vs. Robinsons Retail Holdings | Lepanto Consolidated vs. SM Investments Corp | Lepanto Consolidated vs. House of Investments |
| International Container vs. Allhome Corp | International Container vs. LFM Properties Corp | International Container vs. Monde Nissin Corp | International Container vs. Apollo Global Capital |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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