Correlation Between LiCycle Holdings and Malaga Financial
Can any of the company-specific risk be diversified away by investing in both LiCycle Holdings and Malaga Financial 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 LiCycle Holdings and Malaga Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LiCycle Holdings Corp and Malaga Financial, you can compare the effects of market volatilities on LiCycle Holdings and Malaga Financial 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 LiCycle Holdings with a short position of Malaga Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of LiCycle Holdings and Malaga Financial.
Diversification Opportunities for LiCycle Holdings and Malaga Financial
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between LiCycle and Malaga is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding LiCycle Holdings Corp and Malaga Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Malaga Financial and LiCycle Holdings 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 LiCycle Holdings Corp are associated (or correlated) with Malaga Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Malaga Financial has no effect on the direction of LiCycle Holdings i.e., LiCycle Holdings and Malaga Financial go up and down completely randomly.
Pair Corralation between LiCycle Holdings and Malaga Financial
Given the investment horizon of 90 days LiCycle Holdings Corp is expected to under-perform the Malaga Financial. In addition to that, LiCycle Holdings is 9.9 times more volatile than Malaga Financial. It trades about -0.01 of its total potential returns per unit of risk. Malaga Financial is currently generating about 0.0 per unit of volatility. If you would invest 2,278 in Malaga Financial on September 1, 2024 and sell it today you would earn a total of 0.00 from holding Malaga Financial or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 97.62% |
| Values | Daily Returns |
LiCycle Holdings Corp vs. Malaga Financial
Performance |
| Timeline |
| LiCycle Holdings Corp |
| Malaga Financial |
LiCycle Holdings and Malaga Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LiCycle Holdings and Malaga Financial
The main advantage of trading using opposite LiCycle Holdings and Malaga Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LiCycle Holdings position performs unexpectedly, Malaga Financial 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 Malaga Financial will offset losses from the drop in Malaga Financial's long position.| LiCycle Holdings vs. Casella Waste Systems | LiCycle Holdings vs. Perma Fix Environmental Svcs | LiCycle Holdings vs. Montrose Environmental Grp | LiCycle Holdings vs. LanzaTech Global |
| Malaga Financial vs. MF Bancorp | Malaga Financial vs. United Bancorporation of | Malaga Financial vs. Harbor Bankshares | Malaga Financial vs. BankFirst Capital |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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