Correlation Between Lig Assets and Impact Fusion
Can any of the company-specific risk be diversified away by investing in both Lig Assets and Impact Fusion 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 Lig Assets and Impact Fusion into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lig Assets and Impact Fusion International, you can compare the effects of market volatilities on Lig Assets and Impact Fusion 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 Lig Assets with a short position of Impact Fusion. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lig Assets and Impact Fusion.
Diversification Opportunities for Lig Assets and Impact Fusion
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Lig and Impact is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Lig Assets and Impact Fusion International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Impact Fusion Intern and Lig Assets 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 Lig Assets are associated (or correlated) with Impact Fusion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Impact Fusion Intern has no effect on the direction of Lig Assets i.e., Lig Assets and Impact Fusion go up and down completely randomly.
Pair Corralation between Lig Assets and Impact Fusion
Given the investment horizon of 90 days Lig Assets is expected to generate 1.75 times more return on investment than Impact Fusion. However, Lig Assets is 1.75 times more volatile than Impact Fusion International. It trades about 0.25 of its potential returns per unit of risk. Impact Fusion International is currently generating about -0.32 per unit of risk. If you would invest 1.40 in Lig Assets on November 4, 2024 and sell it today you would earn a total of 0.63 from holding Lig Assets or generate 45.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lig Assets vs. Impact Fusion International
Performance |
| Timeline |
| Lig Assets |
| Impact Fusion Intern |
Lig Assets and Impact Fusion Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lig Assets and Impact Fusion
The main advantage of trading using opposite Lig Assets and Impact Fusion positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lig Assets position performs unexpectedly, Impact Fusion 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 Impact Fusion will offset losses from the drop in Impact Fusion's long position.| Lig Assets vs. Glory Star New | Lig Assets vs. Impact Fusion International | Lig Assets vs. Baosheng Media Group | Lig Assets vs. MGO Global Common |
| Impact Fusion vs. Digital Brand Media | Impact Fusion vs. Beyond Commerce | Impact Fusion vs. Glory Star New | Impact Fusion vs. Baosheng Media Group |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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