Correlation Between Lendinvest PLC and EVS Broadcast
Can any of the company-specific risk be diversified away by investing in both Lendinvest PLC and EVS Broadcast 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 EVS Broadcast into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lendinvest PLC and EVS Broadcast Equipment, you can compare the effects of market volatilities on Lendinvest PLC and EVS Broadcast 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 EVS Broadcast. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lendinvest PLC and EVS Broadcast.
Diversification Opportunities for Lendinvest PLC and EVS Broadcast
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Lendinvest and EVS is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Lendinvest PLC and EVS Broadcast Equipment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EVS Broadcast Equipment 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 EVS Broadcast. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EVS Broadcast Equipment has no effect on the direction of Lendinvest PLC i.e., Lendinvest PLC and EVS Broadcast go up and down completely randomly.
Pair Corralation between Lendinvest PLC and EVS Broadcast
Assuming the 90 days trading horizon Lendinvest PLC is expected to generate 0.65 times more return on investment than EVS Broadcast. However, Lendinvest PLC is 1.55 times less risky than EVS Broadcast. It trades about 0.08 of its potential returns per unit of risk. EVS Broadcast Equipment is currently generating about -0.02 per unit of risk. If you would invest 2,600 in Lendinvest PLC on September 1, 2024 and sell it today you would earn a total of 50.00 from holding Lendinvest PLC or generate 1.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lendinvest PLC vs. EVS Broadcast Equipment
Performance |
| Timeline |
| Lendinvest PLC |
| EVS Broadcast Equipment |
Lendinvest PLC and EVS Broadcast Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lendinvest PLC and EVS Broadcast
The main advantage of trading using opposite Lendinvest PLC and EVS Broadcast positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lendinvest PLC position performs unexpectedly, EVS Broadcast 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 EVS Broadcast will offset losses from the drop in EVS Broadcast'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 |
| EVS Broadcast vs. Bisichi Mining PLC | EVS Broadcast vs. Blackrock World Mining | EVS Broadcast vs. Ross Stores | EVS Broadcast vs. Eco Animal Health |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |