Correlation Between Lendinvest PLC and Bisichi Mining
Can any of the company-specific risk be diversified away by investing in both Lendinvest PLC and Bisichi Mining 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 Bisichi Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lendinvest PLC and Bisichi Mining PLC, you can compare the effects of market volatilities on Lendinvest PLC and Bisichi Mining 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 Bisichi Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lendinvest PLC and Bisichi Mining.
Diversification Opportunities for Lendinvest PLC and Bisichi Mining
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lendinvest and Bisichi is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Lendinvest PLC and Bisichi Mining PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bisichi Mining 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 Bisichi Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bisichi Mining PLC has no effect on the direction of Lendinvest PLC i.e., Lendinvest PLC and Bisichi Mining go up and down completely randomly.
Pair Corralation between Lendinvest PLC and Bisichi Mining
Assuming the 90 days trading horizon Lendinvest PLC is expected to generate 0.55 times more return on investment than Bisichi Mining. However, Lendinvest PLC is 1.81 times less risky than Bisichi Mining. It trades about 0.08 of its potential returns per unit of risk. Bisichi Mining PLC is currently generating about -0.09 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 Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lendinvest PLC vs. Bisichi Mining PLC
Performance |
| Timeline |
| Lendinvest PLC |
| Bisichi Mining PLC |
Lendinvest PLC and Bisichi Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lendinvest PLC and Bisichi Mining
The main advantage of trading using opposite Lendinvest PLC and Bisichi Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lendinvest PLC position performs unexpectedly, Bisichi Mining 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 Bisichi Mining will offset losses from the drop in Bisichi Mining'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 |
| Bisichi Mining vs. Zoom Video Communications | Bisichi Mining vs. Enbridge | Bisichi Mining vs. Endo International PLC | Bisichi Mining vs. Diversified Energy |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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