Correlation Between Lict and United States
Can any of the company-specific risk be diversified away by investing in both Lict and United States 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 Lict and United States into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lict Corporation and United States Cellular, you can compare the effects of market volatilities on Lict and United States 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 Lict with a short position of United States. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lict and United States.
Diversification Opportunities for Lict and United States
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Lict and United is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Lict Corp. and United States Cellular in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on United States Cellular and Lict 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 Lict Corporation are associated (or correlated) with United States. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of United States Cellular has no effect on the direction of Lict i.e., Lict and United States go up and down completely randomly.
Pair Corralation between Lict and United States
If you would invest 1,497 in United States Cellular on August 31, 2024 and sell it today you would earn a total of 846.00 from holding United States Cellular or generate 56.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.27% |
| Values | Daily Returns |
Lict Corp. vs. United States Cellular
Performance |
| Timeline |
| Lict |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| United States Cellular |
Lict and United States Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lict and United States
The main advantage of trading using opposite Lict and United States positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lict position performs unexpectedly, United States 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 United States will offset losses from the drop in United States' long position.| Lict vs. SK Telecom Co | Lict vs. TIM Participacoes SA | Lict vs. PLDT Inc ADR | Lict vs. Liberty Broadband Srs |
| United States vs. United States Cellular | United States vs. Office Properties Income | United States vs. DBA Sempra 5750 | United States vs. Southern Company Series |
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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