Correlation Between Lilium Equity and Ducommun Incorporated
Can any of the company-specific risk be diversified away by investing in both Lilium Equity and Ducommun Incorporated 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 Lilium Equity and Ducommun Incorporated into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lilium Equity Warrants and Ducommun Incorporated, you can compare the effects of market volatilities on Lilium Equity and Ducommun Incorporated 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 Lilium Equity with a short position of Ducommun Incorporated. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lilium Equity and Ducommun Incorporated.
Diversification Opportunities for Lilium Equity and Ducommun Incorporated
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Lilium and Ducommun is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Lilium Equity Warrants and Ducommun Incorporated in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ducommun Incorporated and Lilium Equity 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 Lilium Equity Warrants are associated (or correlated) with Ducommun Incorporated. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ducommun Incorporated has no effect on the direction of Lilium Equity i.e., Lilium Equity and Ducommun Incorporated go up and down completely randomly.
Pair Corralation between Lilium Equity and Ducommun Incorporated
If you would invest 6,359 in Ducommun Incorporated on November 2, 2024 and sell it today you would earn a total of 506.00 from holding Ducommun Incorporated or generate 7.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 5.26% |
| Values | Daily Returns |
Lilium Equity Warrants vs. Ducommun Incorporated
Performance |
| Timeline |
| Lilium Equity Warrants |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Ducommun Incorporated |
Lilium Equity and Ducommun Incorporated Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lilium Equity and Ducommun Incorporated
The main advantage of trading using opposite Lilium Equity and Ducommun Incorporated positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lilium Equity position performs unexpectedly, Ducommun Incorporated 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 Ducommun Incorporated will offset losses from the drop in Ducommun Incorporated's long position.| Lilium Equity vs. Joby Aviation | Lilium Equity vs. Archer Aviation WT | Lilium Equity vs. Lilium NV | Lilium Equity vs. AEye Inc |
| Ducommun Incorporated vs. Innovative Solutions and | Ducommun Incorporated vs. National Presto Industries | Ducommun Incorporated vs. Astronics | Ducommun Incorporated vs. Park Electrochemical |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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