Correlation Between Litigation Capital and Anglo Eastern
Can any of the company-specific risk be diversified away by investing in both Litigation Capital and Anglo Eastern 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 Litigation Capital and Anglo Eastern into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Litigation Capital Management and Anglo Eastern Plantations PLC, you can compare the effects of market volatilities on Litigation Capital and Anglo Eastern 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 Litigation Capital with a short position of Anglo Eastern. Check out your portfolio center. Please also check ongoing floating volatility patterns of Litigation Capital and Anglo Eastern.
Diversification Opportunities for Litigation Capital and Anglo Eastern
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Litigation and Anglo is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Litigation Capital Management and Anglo Eastern Plantations PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anglo Eastern Planta and Litigation Capital 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 Litigation Capital Management are associated (or correlated) with Anglo Eastern. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anglo Eastern Planta has no effect on the direction of Litigation Capital i.e., Litigation Capital and Anglo Eastern go up and down completely randomly.
Pair Corralation between Litigation Capital and Anglo Eastern
Assuming the 90 days trading horizon Litigation Capital Management is expected to under-perform the Anglo Eastern. In addition to that, Litigation Capital is 1.5 times more volatile than Anglo Eastern Plantations PLC. It trades about -0.06 of its total potential returns per unit of risk. Anglo Eastern Plantations PLC is currently generating about 0.01 per unit of volatility. If you would invest 67,264 in Anglo Eastern Plantations PLC on December 2, 2024 and sell it today you would lose (664.00) from holding Anglo Eastern Plantations PLC or give up 0.99% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Litigation Capital Management vs. Anglo Eastern Plantations PLC
Performance |
| Timeline |
| Litigation Capital |
| Anglo Eastern Planta |
Litigation Capital and Anglo Eastern Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Litigation Capital and Anglo Eastern
The main advantage of trading using opposite Litigation Capital and Anglo Eastern positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Litigation Capital position performs unexpectedly, Anglo Eastern 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 Anglo Eastern will offset losses from the drop in Anglo Eastern's long position.| Litigation Capital vs. Ondine Biomedical | Litigation Capital vs. Norman Broadbent Plc | Litigation Capital vs. Trainline Plc | Litigation Capital vs. Gaztransport et Technigaz |
| Anglo Eastern vs. Compal Electronics GDR | Anglo Eastern vs. STMicroelectronics NV | Anglo Eastern vs. Electronic Arts | Anglo Eastern vs. G5 Entertainment AB |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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