Correlation Between Logintrade and Shoper SA
Can any of the company-specific risk be diversified away by investing in both Logintrade and Shoper SA 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 Shoper SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Logintrade SA and Shoper SA, you can compare the effects of market volatilities on Logintrade and Shoper SA 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 Shoper SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Logintrade and Shoper SA.
Diversification Opportunities for Logintrade and Shoper SA
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Logintrade and Shoper is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Logintrade SA and Shoper SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shoper SA 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 Shoper SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shoper SA has no effect on the direction of Logintrade i.e., Logintrade and Shoper SA go up and down completely randomly.
Pair Corralation between Logintrade and Shoper SA
Assuming the 90 days trading horizon Logintrade SA is expected to generate 1.68 times more return on investment than Shoper SA. However, Logintrade is 1.68 times more volatile than Shoper SA. It trades about 0.1 of its potential returns per unit of risk. Shoper SA is currently generating about 0.05 per unit of risk. If you would invest 268.00 in Logintrade SA on September 1, 2024 and sell it today you would earn a total of 80.00 from holding Logintrade SA or generate 29.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 58.59% |
| Values | Daily Returns |
Logintrade SA vs. Shoper SA
Performance |
| Timeline |
| Logintrade SA |
| Shoper SA |
Logintrade and Shoper SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Logintrade and Shoper SA
The main advantage of trading using opposite Logintrade and Shoper SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Logintrade position performs unexpectedly, Shoper SA 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 Shoper SA will offset losses from the drop in Shoper SA's long position.| Logintrade vs. Banco Santander SA | Logintrade vs. UniCredit SpA | Logintrade vs. CEZ as | Logintrade vs. Polski Koncern Naftowy |
| Shoper SA vs. PZ Cormay SA | Shoper SA vs. Logintrade SA | Shoper SA vs. LSI Software SA | Shoper SA vs. Drago entertainment 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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