Correlation Between Lendinvest PLC and Atresmedia
Can any of the company-specific risk be diversified away by investing in both Lendinvest PLC and Atresmedia 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 Lendinvest PLC and Atresmedia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lendinvest PLC and Atresmedia, you can compare the effects of market volatilities on Lendinvest PLC and Atresmedia 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 Lendinvest PLC with a short position of Atresmedia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lendinvest PLC and Atresmedia.
Diversification Opportunities for Lendinvest PLC and Atresmedia
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Lendinvest and Atresmedia is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Lendinvest PLC and Atresmedia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atresmedia and Lendinvest PLC 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 Lendinvest PLC are associated (or correlated) with Atresmedia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atresmedia has no effect on the direction of Lendinvest PLC i.e., Lendinvest PLC and Atresmedia go up and down completely randomly.
Pair Corralation between Lendinvest PLC and Atresmedia
Assuming the 90 days trading horizon Lendinvest PLC is expected to under-perform the Atresmedia. In addition to that, Lendinvest PLC is 1.38 times more volatile than Atresmedia. It trades about -0.02 of its total potential returns per unit of risk. Atresmedia is currently generating about 0.1 per unit of volatility. If you would invest 333.00 in Atresmedia on September 1, 2024 and sell it today you would earn a total of 120.00 from holding Atresmedia or generate 36.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lendinvest PLC vs. Atresmedia
Performance |
| Timeline |
| Lendinvest PLC |
| Atresmedia |
Lendinvest PLC and Atresmedia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lendinvest PLC and Atresmedia
The main advantage of trading using opposite Lendinvest PLC and Atresmedia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lendinvest PLC position performs unexpectedly, Atresmedia 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 Atresmedia will offset losses from the drop in Atresmedia's long position.| Lendinvest PLC vs. Samsung Electronics Co | Lendinvest PLC vs. Samsung Electronics Co | Lendinvest PLC vs. Toyota Motor Corp | Lendinvest PLC vs. Reliance Industries Ltd |
| Atresmedia vs. Uniper SE | Atresmedia vs. Mulberry Group PLC | Atresmedia vs. London Security Plc | Atresmedia vs. Triad Group PLC |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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