Correlation Between LG Display and Lloyds Banking
Can any of the company-specific risk be diversified away by investing in both LG Display and Lloyds Banking 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 LG Display and Lloyds Banking into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LG Display Co and Lloyds Banking Group, you can compare the effects of market volatilities on LG Display and Lloyds Banking 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 LG Display with a short position of Lloyds Banking. Check out your portfolio center. Please also check ongoing floating volatility patterns of LG Display and Lloyds Banking.
Diversification Opportunities for LG Display and Lloyds Banking
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between LGA and Lloyds is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding LG Display Co and Lloyds Banking Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lloyds Banking Group and LG Display 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 LG Display Co are associated (or correlated) with Lloyds Banking. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lloyds Banking Group has no effect on the direction of LG Display i.e., LG Display and Lloyds Banking go up and down completely randomly.
Pair Corralation between LG Display and Lloyds Banking
Assuming the 90 days horizon LG Display is expected to generate 5.44 times less return on investment than Lloyds Banking. In addition to that, LG Display is 1.18 times more volatile than Lloyds Banking Group. It trades about 0.05 of its total potential returns per unit of risk. Lloyds Banking Group is currently generating about 0.3 per unit of volatility. If you would invest 252.00 in Lloyds Banking Group on November 30, 2024 and sell it today you would earn a total of 88.00 from holding Lloyds Banking Group or generate 34.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 97.67% |
| Values | Daily Returns |
LG Display Co vs. Lloyds Banking Group
Performance |
| Timeline |
| LG Display |
| Lloyds Banking Group |
LG Display and Lloyds Banking Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LG Display and Lloyds Banking
The main advantage of trading using opposite LG Display and Lloyds Banking positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LG Display position performs unexpectedly, Lloyds Banking 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 Lloyds Banking will offset losses from the drop in Lloyds Banking's long position.| LG Display vs. Uber Technologies | LG Display vs. Firan Technology Group | LG Display vs. BioNTech SE | LG Display vs. SOFI TECHNOLOGIES |
| Lloyds Banking vs. CORNISH METALS INC | Lloyds Banking vs. UNIVERSAL MUSIC GROUP | Lloyds Banking vs. FIREWEED METALS P | Lloyds Banking vs. Zijin Mining 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |