Correlation Between Lendinvest PLC and Polar Capital
Can any of the company-specific risk be diversified away by investing in both Lendinvest PLC and Polar Capital 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 Polar Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lendinvest PLC and Polar Capital Technology, you can compare the effects of market volatilities on Lendinvest PLC and Polar Capital 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 Polar Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lendinvest PLC and Polar Capital.
Diversification Opportunities for Lendinvest PLC and Polar Capital
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Lendinvest and Polar is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Lendinvest PLC and Polar Capital Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Polar Capital Technology 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 Polar Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Polar Capital Technology has no effect on the direction of Lendinvest PLC i.e., Lendinvest PLC and Polar Capital go up and down completely randomly.
Pair Corralation between Lendinvest PLC and Polar Capital
Assuming the 90 days trading horizon Lendinvest PLC is expected to under-perform the Polar Capital. But the stock apears to be less risky and, when comparing its historical volatility, Lendinvest PLC is 1.05 times less risky than Polar Capital. The stock trades about 0.0 of its potential returns per unit of risk. The Polar Capital Technology is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 29,250 in Polar Capital Technology on September 1, 2024 and sell it today you would earn a total of 4,350 from holding Polar Capital Technology or generate 14.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lendinvest PLC vs. Polar Capital Technology
Performance |
| Timeline |
| Lendinvest PLC |
| Polar Capital Technology |
Lendinvest PLC and Polar Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lendinvest PLC and Polar Capital
The main advantage of trading using opposite Lendinvest PLC and Polar Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lendinvest PLC position performs unexpectedly, Polar Capital 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 Polar Capital will offset losses from the drop in Polar Capital'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 |
| Polar Capital vs. Toyota Motor Corp | Polar Capital vs. SoftBank Group Corp | Polar Capital vs. OTP Bank Nyrt | Polar Capital vs. Las Vegas Sands |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |