Correlation Between Legal General and Grand Vision
Can any of the company-specific risk be diversified away by investing in both Legal General and Grand Vision 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 Legal General and Grand Vision into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Legal General Group and Grand Vision Media, you can compare the effects of market volatilities on Legal General and Grand Vision 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 Legal General with a short position of Grand Vision. Check out your portfolio center. Please also check ongoing floating volatility patterns of Legal General and Grand Vision.
Diversification Opportunities for Legal General and Grand Vision
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Legal and Grand is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Legal General Group and Grand Vision Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grand Vision Media and Legal General 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 Legal General Group are associated (or correlated) with Grand Vision. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grand Vision Media has no effect on the direction of Legal General i.e., Legal General and Grand Vision go up and down completely randomly.
Pair Corralation between Legal General and Grand Vision
If you would invest 22,000 in Legal General Group on September 4, 2024 and sell it today you would earn a total of 350.00 from holding Legal General Group or generate 1.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Legal General Group vs. Grand Vision Media
Performance |
| Timeline |
| Legal General Group |
| Grand Vision Media |
Legal General and Grand Vision Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Legal General and Grand Vision
The main advantage of trading using opposite Legal General and Grand Vision positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Legal General position performs unexpectedly, Grand Vision 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 Grand Vision will offset losses from the drop in Grand Vision's long position.| Legal General vs. Grand Vision Media | Legal General vs. One Media iP | Legal General vs. JD Sports Fashion | Legal General vs. Tata Steel Limited |
| Grand Vision vs. Samsung Electronics Co | Grand Vision vs. Samsung Electronics Co | Grand Vision vs. Hyundai Motor | Grand Vision vs. Toyota Motor Corp |
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.
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