Correlation Between Lendinvest PLC and Las Vegas
Can any of the company-specific risk be diversified away by investing in both Lendinvest PLC and Las Vegas 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 Las Vegas into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lendinvest PLC and Las Vegas Sands, you can compare the effects of market volatilities on Lendinvest PLC and Las Vegas 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 Las Vegas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lendinvest PLC and Las Vegas.
Diversification Opportunities for Lendinvest PLC and Las Vegas
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Lendinvest and Las is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Lendinvest PLC and Las Vegas Sands in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Las Vegas Sands 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 Las Vegas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Las Vegas Sands has no effect on the direction of Lendinvest PLC i.e., Lendinvest PLC and Las Vegas go up and down completely randomly.
Pair Corralation between Lendinvest PLC and Las Vegas
Assuming the 90 days trading horizon Lendinvest PLC is expected to under-perform the Las Vegas. But the stock apears to be less risky and, when comparing its historical volatility, Lendinvest PLC is 1.46 times less risky than Las Vegas. The stock trades about -0.04 of its potential returns per unit of risk. The Las Vegas Sands is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 4,427 in Las Vegas Sands on September 1, 2024 and sell it today you would earn a total of 868.00 from holding Las Vegas Sands or generate 19.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.47% |
| Values | Daily Returns |
Lendinvest PLC vs. Las Vegas Sands
Performance |
| Timeline |
| Lendinvest PLC |
| Las Vegas Sands |
Lendinvest PLC and Las Vegas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lendinvest PLC and Las Vegas
The main advantage of trading using opposite Lendinvest PLC and Las Vegas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lendinvest PLC position performs unexpectedly, Las Vegas 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 Las Vegas will offset losses from the drop in Las Vegas' 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 |
| Las Vegas vs. Allianz Technology Trust | Las Vegas vs. InterContinental Hotels Group | Las Vegas vs. L3Harris Technologies | Las Vegas vs. PureTech Health 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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