Correlation Between Logintrade and New Tech
Can any of the company-specific risk be diversified away by investing in both Logintrade and New Tech 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 Logintrade and New Tech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Logintrade SA and New Tech Capital, you can compare the effects of market volatilities on Logintrade and New Tech 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 Logintrade with a short position of New Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Logintrade and New Tech.
Diversification Opportunities for Logintrade and New Tech
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Logintrade and New is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Logintrade SA and New Tech Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New Tech Capital and Logintrade 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 Logintrade SA are associated (or correlated) with New Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New Tech Capital has no effect on the direction of Logintrade i.e., Logintrade and New Tech go up and down completely randomly.
Pair Corralation between Logintrade and New Tech
Assuming the 90 days trading horizon Logintrade SA is expected to generate 1.19 times more return on investment than New Tech. However, Logintrade is 1.19 times more volatile than New Tech Capital. It trades about 0.38 of its potential returns per unit of risk. New Tech Capital is currently generating about -0.51 per unit of risk. If you would invest 314.00 in Logintrade SA on August 23, 2024 and sell it today you would earn a total of 34.00 from holding Logintrade SA or generate 10.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 52.38% |
| Values | Daily Returns |
Logintrade SA vs. New Tech Capital
Performance |
| Timeline |
| Logintrade SA |
| New Tech Capital |
Logintrade and New Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Logintrade and New Tech
The main advantage of trading using opposite Logintrade and New Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Logintrade position performs unexpectedly, New Tech 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 New Tech will offset losses from the drop in New Tech's long position.| Logintrade vs. LSI Software SA | Logintrade vs. SOFTWARE MANSION SPOLKA | Logintrade vs. Quantum Software SA | Logintrade vs. Medicofarma Biotech SA |
| New Tech vs. Igoria Trade SA | New Tech vs. Globe Trade Centre | New Tech vs. Logintrade SA | New Tech vs. PZ Cormay SA |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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