Correlation Between Lendinvest PLC and Metals Exploration
Can any of the company-specific risk be diversified away by investing in both Lendinvest PLC and Metals Exploration 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 Metals Exploration into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lendinvest PLC and Metals Exploration Plc, you can compare the effects of market volatilities on Lendinvest PLC and Metals Exploration 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 Metals Exploration. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lendinvest PLC and Metals Exploration.
Diversification Opportunities for Lendinvest PLC and Metals Exploration
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lendinvest and Metals is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Lendinvest PLC and Metals Exploration Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Metals Exploration 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 Metals Exploration. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Metals Exploration Plc has no effect on the direction of Lendinvest PLC i.e., Lendinvest PLC and Metals Exploration go up and down completely randomly.
Pair Corralation between Lendinvest PLC and Metals Exploration
Assuming the 90 days trading horizon Lendinvest PLC is expected to generate 0.31 times more return on investment than Metals Exploration. However, Lendinvest PLC is 3.27 times less risky than Metals Exploration. It trades about -0.18 of its potential returns per unit of risk. Metals Exploration Plc is currently generating about -0.07 per unit of risk. If you would invest 2,650 in Lendinvest PLC on September 13, 2024 and sell it today you would lose (100.00) from holding Lendinvest PLC or give up 3.77% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lendinvest PLC vs. Metals Exploration Plc
Performance |
| Timeline |
| Lendinvest PLC |
| Metals Exploration Plc |
Lendinvest PLC and Metals Exploration Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lendinvest PLC and Metals Exploration
The main advantage of trading using opposite Lendinvest PLC and Metals Exploration positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lendinvest PLC position performs unexpectedly, Metals Exploration 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 Metals Exploration will offset losses from the drop in Metals Exploration's long position.| Lendinvest PLC vs. Tyson Foods Cl | Lendinvest PLC vs. Fevertree Drinks Plc | Lendinvest PLC vs. Naturhouse Health SA | Lendinvest PLC vs. Universal Display Corp |
| Metals Exploration vs. Givaudan SA | Metals Exploration vs. Antofagasta PLC | Metals Exploration vs. Ferrexpo PLC | Metals Exploration vs. Atalaya Mining |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |