Correlation Between Lepanto Consolidated and Bill
Can any of the company-specific risk be diversified away by investing in both Lepanto Consolidated and Bill 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 Bill 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 Bill Com Holdings, you can compare the effects of market volatilities on Lepanto Consolidated and Bill 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 Bill. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lepanto Consolidated and Bill.
Diversification Opportunities for Lepanto Consolidated and Bill
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Lepanto and Bill is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Lepanto Consolidated Mining and Bill Com Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bill Com Holdings 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 Bill. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bill Com Holdings has no effect on the direction of Lepanto Consolidated i.e., Lepanto Consolidated and Bill go up and down completely randomly.
Pair Corralation between Lepanto Consolidated and Bill
If you would invest 5,184 in Bill Com Holdings on September 12, 2024 and sell it today you would earn a total of 3,866 from holding Bill Com Holdings or generate 74.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 98.44% |
| Values | Daily Returns |
Lepanto Consolidated Mining vs. Bill Com Holdings
Performance |
| Timeline |
| Lepanto Consolidated |
| Bill Com Holdings |
Lepanto Consolidated and Bill Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lepanto Consolidated and Bill
The main advantage of trading using opposite Lepanto Consolidated and Bill positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lepanto Consolidated position performs unexpectedly, Bill 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 Bill will offset losses from the drop in Bill's long position.| Lepanto Consolidated vs. BRP Inc | Lepanto Consolidated vs. Life Time Group | Lepanto Consolidated vs. ATRenew Inc DRC | Lepanto Consolidated vs. Getty Realty |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |