Correlation Between Lendway and Here Media
Can any of the company-specific risk be diversified away by investing in both Lendway and Here Media 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 Lendway and Here Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lendway and Here Media, you can compare the effects of market volatilities on Lendway and Here Media 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 Lendway with a short position of Here Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lendway and Here Media.
Diversification Opportunities for Lendway and Here Media
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Lendway and Here is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Lendway and Here Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Here Media and Lendway 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 Lendway are associated (or correlated) with Here Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Here Media has no effect on the direction of Lendway i.e., Lendway and Here Media go up and down completely randomly.
Pair Corralation between Lendway and Here Media
If you would invest 349.00 in Lendway on September 13, 2024 and sell it today you would earn a total of 77.00 from holding Lendway or generate 22.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Lendway vs. Here Media
Performance |
| Timeline |
| Lendway |
| Here Media |
Lendway and Here Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lendway and Here Media
The main advantage of trading using opposite Lendway and Here Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lendway position performs unexpectedly, Here Media 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 Here Media will offset losses from the drop in Here Media's long position.| Lendway vs. Uranium Energy Corp | Lendway vs. East Africa Metals | Lendway vs. Hertz Global Holdings | Lendway vs. Global Ship Lease |
| Here Media vs. BCE Inc | Here Media vs. Pinterest | Here Media vs. Radcom | Here Media vs. Freedom Internet Group |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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