Correlation Between Lendinvest PLC and TechnipFMC PLC
Can any of the company-specific risk be diversified away by investing in both Lendinvest PLC and TechnipFMC PLC 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 TechnipFMC PLC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lendinvest PLC and TechnipFMC PLC, you can compare the effects of market volatilities on Lendinvest PLC and TechnipFMC PLC 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 TechnipFMC PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lendinvest PLC and TechnipFMC PLC.
Diversification Opportunities for Lendinvest PLC and TechnipFMC PLC
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lendinvest and TechnipFMC is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Lendinvest PLC and TechnipFMC PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TechnipFMC PLC 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 TechnipFMC PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TechnipFMC PLC has no effect on the direction of Lendinvest PLC i.e., Lendinvest PLC and TechnipFMC PLC go up and down completely randomly.
Pair Corralation between Lendinvest PLC and TechnipFMC PLC
Assuming the 90 days trading horizon Lendinvest PLC is expected to under-perform the TechnipFMC PLC. But the stock apears to be less risky and, when comparing its historical volatility, Lendinvest PLC is 1.46 times less risky than TechnipFMC PLC. The stock trades about 0.0 of its potential returns per unit of risk. The TechnipFMC PLC is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 2,010 in TechnipFMC PLC on September 1, 2024 and sell it today you would earn a total of 956.00 from holding TechnipFMC PLC or generate 47.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lendinvest PLC vs. TechnipFMC PLC
Performance |
| Timeline |
| Lendinvest PLC |
| TechnipFMC PLC |
Lendinvest PLC and TechnipFMC PLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lendinvest PLC and TechnipFMC PLC
The main advantage of trading using opposite Lendinvest PLC and TechnipFMC PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lendinvest PLC position performs unexpectedly, TechnipFMC PLC 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 TechnipFMC PLC will offset losses from the drop in TechnipFMC PLC'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 |
| TechnipFMC PLC vs. Molson Coors Beverage | TechnipFMC PLC vs. Evolution Gaming Group | TechnipFMC PLC vs. Kinnevik Investment AB | TechnipFMC PLC vs. Intuitive Investments Group |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |