Correlation Between Lucid and Neoen SA
Can any of the company-specific risk be diversified away by investing in both Lucid and Neoen SA 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 Lucid and Neoen SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lucid Group and Neoen SA, you can compare the effects of market volatilities on Lucid and Neoen SA 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 Lucid with a short position of Neoen SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lucid and Neoen SA.
Diversification Opportunities for Lucid and Neoen SA
Excellent diversification
The 3 months correlation between Lucid and Neoen is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Lucid Group and Neoen SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Neoen SA and Lucid 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 Lucid Group are associated (or correlated) with Neoen SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Neoen SA has no effect on the direction of Lucid i.e., Lucid and Neoen SA go up and down completely randomly.
Pair Corralation between Lucid and Neoen SA
If you would invest 221.00 in Lucid Group on September 1, 2024 and sell it today you would lose (3.00) from holding Lucid Group or give up 1.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Lucid Group vs. Neoen SA
Performance |
| Timeline |
| Lucid Group |
| Neoen SA |
Lucid and Neoen SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lucid and Neoen SA
The main advantage of trading using opposite Lucid and Neoen SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lucid position performs unexpectedly, Neoen SA 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 Neoen SA will offset losses from the drop in Neoen SA's long position.The idea behind Lucid Group and Neoen SA pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Neoen SA vs. Artisan Partners Asset | Neoen SA vs. Pintec Technology Holdings | Neoen SA vs. Valneva SE ADR | Neoen SA vs. Chiba Bank Ltd |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |