Correlation Between Lucid and INVESCO
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By analyzing existing cross correlation between Lucid Group and INVESCO FIN PLC, you can compare the effects of market volatilities on Lucid and INVESCO 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 INVESCO. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lucid and INVESCO.
Diversification Opportunities for Lucid and INVESCO
Good diversification
The 3 months correlation between Lucid and INVESCO is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Lucid Group and INVESCO FIN PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INVESCO FIN PLC 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 INVESCO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INVESCO FIN PLC has no effect on the direction of Lucid i.e., Lucid and INVESCO go up and down completely randomly.
Pair Corralation between Lucid and INVESCO
Given the investment horizon of 90 days Lucid Group is expected to under-perform the INVESCO. In addition to that, Lucid is 3.38 times more volatile than INVESCO FIN PLC. It trades about -0.19 of its total potential returns per unit of risk. INVESCO FIN PLC is currently generating about -0.06 per unit of volatility. If you would invest 10,022 in INVESCO FIN PLC on September 3, 2024 and sell it today you would lose (301.00) from holding INVESCO FIN PLC or give up 3.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 57.81% |
| Values | Daily Returns |
Lucid Group vs. INVESCO FIN PLC
Performance |
| Timeline |
| Lucid Group |
| INVESCO FIN PLC |
Lucid and INVESCO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lucid and INVESCO
The main advantage of trading using opposite Lucid and INVESCO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lucid position performs unexpectedly, INVESCO 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 INVESCO will offset losses from the drop in INVESCO's long position.| Lucid vs. GreenPower Motor | Lucid vs. Li Auto | Lucid vs. ZEEKR Intelligent Technology | Lucid vs. Volcon Inc |
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.
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