Correlation Between Legrand SA and Loop Energy
Can any of the company-specific risk be diversified away by investing in both Legrand SA and Loop Energy 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 Legrand SA and Loop Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Legrand SA ADR and Loop Energy, you can compare the effects of market volatilities on Legrand SA and Loop Energy 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 Legrand SA with a short position of Loop Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Legrand SA and Loop Energy.
Diversification Opportunities for Legrand SA and Loop Energy
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Legrand and Loop is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Legrand SA ADR and Loop Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Loop Energy and Legrand SA 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 Legrand SA ADR are associated (or correlated) with Loop Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Loop Energy has no effect on the direction of Legrand SA i.e., Legrand SA and Loop Energy go up and down completely randomly.
Pair Corralation between Legrand SA and Loop Energy
If you would invest 8.00 in Loop Energy on August 28, 2024 and sell it today you would earn a total of 0.00 from holding Loop Energy or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Legrand SA ADR vs. Loop Energy
Performance |
| Timeline |
| Legrand SA ADR |
| Loop Energy |
Legrand SA and Loop Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Legrand SA and Loop Energy
The main advantage of trading using opposite Legrand SA and Loop Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Legrand SA position performs unexpectedly, Loop Energy 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 Loop Energy will offset losses from the drop in Loop Energy's long position.| Legrand SA vs. FREYR Battery SA | Legrand SA vs. nVent Electric PLC | Legrand SA vs. Hubbell | Legrand SA vs. Advanced Energy Industries |
| Loop Energy vs. Legrand SA ADR | Loop Energy vs. AFC Energy plc | Loop Energy vs. Sunrise New Energy | Loop Energy vs. Tantalus Systems Holding |
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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