Correlation Between Lendinvest PLC and Pets At
Can any of the company-specific risk be diversified away by investing in both Lendinvest PLC and Pets At 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 Pets At into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lendinvest PLC and Pets at Home, you can compare the effects of market volatilities on Lendinvest PLC and Pets At 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 Pets At. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lendinvest PLC and Pets At.
Diversification Opportunities for Lendinvest PLC and Pets At
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Lendinvest and Pets is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Lendinvest PLC and Pets at Home in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pets at Home 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 Pets At. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pets at Home has no effect on the direction of Lendinvest PLC i.e., Lendinvest PLC and Pets At go up and down completely randomly.
Pair Corralation between Lendinvest PLC and Pets At
Assuming the 90 days trading horizon Lendinvest PLC is expected to generate 0.62 times more return on investment than Pets At. However, Lendinvest PLC is 1.61 times less risky than Pets At. It trades about 0.0 of its potential returns per unit of risk. Pets at Home is currently generating about -0.02 per unit of risk. If you would invest 2,720 in Lendinvest PLC on September 1, 2024 and sell it today you would lose (70.00) from holding Lendinvest PLC or give up 2.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lendinvest PLC vs. Pets at Home
Performance |
| Timeline |
| Lendinvest PLC |
| Pets at Home |
Lendinvest PLC and Pets At Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lendinvest PLC and Pets At
The main advantage of trading using opposite Lendinvest PLC and Pets At positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lendinvest PLC position performs unexpectedly, Pets At 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 Pets At will offset losses from the drop in Pets At'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 |
| Pets At vs. Bellevue Healthcare Trust | Pets At vs. Silvercorp Metals | Pets At vs. Central Asia Metals | Pets At vs. Neometals |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |