Correlation Between LGI Homes and ASTRAZENECA
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By analyzing existing cross correlation between LGI Homes and ASTRAZENECA PLC 4375, you can compare the effects of market volatilities on LGI Homes and ASTRAZENECA 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 LGI Homes with a short position of ASTRAZENECA. Check out your portfolio center. Please also check ongoing floating volatility patterns of LGI Homes and ASTRAZENECA.
Diversification Opportunities for LGI Homes and ASTRAZENECA
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between LGI and ASTRAZENECA is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding LGI Homes and ASTRAZENECA PLC 4375 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASTRAZENECA PLC 4375 and LGI Homes 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 LGI Homes are associated (or correlated) with ASTRAZENECA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ASTRAZENECA PLC 4375 has no effect on the direction of LGI Homes i.e., LGI Homes and ASTRAZENECA go up and down completely randomly.
Pair Corralation between LGI Homes and ASTRAZENECA
Given the investment horizon of 90 days LGI Homes is expected to under-perform the ASTRAZENECA. In addition to that, LGI Homes is 3.01 times more volatile than ASTRAZENECA PLC 4375. It trades about -0.01 of its total potential returns per unit of risk. ASTRAZENECA PLC 4375 is currently generating about -0.03 per unit of volatility. If you would invest 9,417 in ASTRAZENECA PLC 4375 on September 12, 2024 and sell it today you would lose (554.00) from holding ASTRAZENECA PLC 4375 or give up 5.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 81.85% |
| Values | Daily Returns |
LGI Homes vs. ASTRAZENECA PLC 4375
Performance |
| Timeline |
| LGI Homes |
| ASTRAZENECA PLC 4375 |
LGI Homes and ASTRAZENECA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LGI Homes and ASTRAZENECA
The main advantage of trading using opposite LGI Homes and ASTRAZENECA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LGI Homes position performs unexpectedly, ASTRAZENECA 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 ASTRAZENECA will offset losses from the drop in ASTRAZENECA's long position.| LGI Homes vs. MI Homes | LGI Homes vs. Taylor Morn Home | LGI Homes vs. TRI Pointe Homes | LGI Homes vs. Beazer Homes USA |
| ASTRAZENECA vs. Haverty Furniture Companies | ASTRAZENECA vs. Coursera | ASTRAZENECA vs. LGI Homes | ASTRAZENECA vs. Skillful Craftsman Education |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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