Correlation Between Lucid and Tricon Capital
Can any of the company-specific risk be diversified away by investing in both Lucid and Tricon Capital 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 Tricon Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lucid Group and Tricon Capital Group, you can compare the effects of market volatilities on Lucid and Tricon Capital 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 Tricon Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lucid and Tricon Capital.
Diversification Opportunities for Lucid and Tricon Capital
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Lucid and Tricon is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Lucid Group and Tricon Capital Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tricon Capital Group 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 Tricon Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tricon Capital Group has no effect on the direction of Lucid i.e., Lucid and Tricon Capital go up and down completely randomly.
Pair Corralation between Lucid and Tricon Capital
If you would invest 234.00 in Lucid Group on September 12, 2024 and sell it today you would earn a total of 2.00 from holding Lucid Group or generate 0.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Lucid Group vs. Tricon Capital Group
Performance |
| Timeline |
| Lucid Group |
| Tricon Capital Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Lucid and Tricon Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lucid and Tricon Capital
The main advantage of trading using opposite Lucid and Tricon Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lucid position performs unexpectedly, Tricon Capital 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 Tricon Capital will offset losses from the drop in Tricon Capital's long position.The idea behind Lucid Group and Tricon Capital Group 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.| Tricon Capital vs. Marcus Millichap | Tricon Capital vs. Frp Holdings Ord | Tricon Capital vs. Maui Land Pineapple | Tricon Capital vs. Brookfield Property Partners |
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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