Correlation Between Lilium Equity and Grab Holdings
Can any of the company-specific risk be diversified away by investing in both Lilium Equity and Grab Holdings 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 Grab Holdings 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 Grab Holdings Limited, you can compare the effects of market volatilities on Lilium Equity and Grab Holdings 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 Grab Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lilium Equity and Grab Holdings.
Diversification Opportunities for Lilium Equity and Grab Holdings
-0.84 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Lilium and Grab is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding Lilium Equity Warrants and Grab Holdings Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grab Holdings Limited 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 Grab Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grab Holdings Limited has no effect on the direction of Lilium Equity i.e., Lilium Equity and Grab Holdings go up and down completely randomly.
Pair Corralation between Lilium Equity and Grab Holdings
Assuming the 90 days horizon Lilium Equity Warrants is expected to under-perform the Grab Holdings. In addition to that, Lilium Equity is 1.63 times more volatile than Grab Holdings Limited. It trades about -0.58 of its total potential returns per unit of risk. Grab Holdings Limited is currently generating about 0.23 per unit of volatility. If you would invest 31.00 in Grab Holdings Limited on August 30, 2024 and sell it today you would earn a total of 17.00 from holding Grab Holdings Limited or generate 54.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 36.36% |
| Values | Daily Returns |
Lilium Equity Warrants vs. Grab Holdings Limited
Performance |
| Timeline |
| Lilium Equity Warrants |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Grab Holdings Limited |
Lilium Equity and Grab Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lilium Equity and Grab Holdings
The main advantage of trading using opposite Lilium Equity and Grab Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lilium Equity position performs unexpectedly, Grab Holdings 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 Grab Holdings will offset losses from the drop in Grab Holdings' long position.| Lilium Equity vs. Joby Aviation | Lilium Equity vs. Lilium NV | Lilium Equity vs. AEye Inc | Lilium Equity vs. Microvast Holdings |
| Grab Holdings vs. Grab Holdings | Grab Holdings vs. EVgo Equity Warrants | Grab Holdings vs. Bakkt Holdings Warrant |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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