Correlation Between Lloyds Banking and VARIOUS EATERIES
Can any of the company-specific risk be diversified away by investing in both Lloyds Banking and VARIOUS EATERIES 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 Lloyds Banking and VARIOUS EATERIES into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lloyds Banking Group and VARIOUS EATERIES LS, you can compare the effects of market volatilities on Lloyds Banking and VARIOUS EATERIES 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 Lloyds Banking with a short position of VARIOUS EATERIES. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lloyds Banking and VARIOUS EATERIES.
Diversification Opportunities for Lloyds Banking and VARIOUS EATERIES
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Lloyds and VARIOUS is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Lloyds Banking Group and VARIOUS EATERIES LS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VARIOUS EATERIES and Lloyds Banking 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 Lloyds Banking Group are associated (or correlated) with VARIOUS EATERIES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VARIOUS EATERIES has no effect on the direction of Lloyds Banking i.e., Lloyds Banking and VARIOUS EATERIES go up and down completely randomly.
Pair Corralation between Lloyds Banking and VARIOUS EATERIES
Assuming the 90 days trading horizon Lloyds Banking Group is expected to generate 0.89 times more return on investment than VARIOUS EATERIES. However, Lloyds Banking Group is 1.13 times less risky than VARIOUS EATERIES. It trades about 0.04 of its potential returns per unit of risk. VARIOUS EATERIES LS is currently generating about -0.03 per unit of risk. If you would invest 184.00 in Lloyds Banking Group on September 3, 2024 and sell it today you would earn a total of 64.00 from holding Lloyds Banking Group or generate 34.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lloyds Banking Group vs. VARIOUS EATERIES LS
Performance |
| Timeline |
| Lloyds Banking Group |
| VARIOUS EATERIES |
Lloyds Banking and VARIOUS EATERIES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lloyds Banking and VARIOUS EATERIES
The main advantage of trading using opposite Lloyds Banking and VARIOUS EATERIES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lloyds Banking position performs unexpectedly, VARIOUS EATERIES 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 VARIOUS EATERIES will offset losses from the drop in VARIOUS EATERIES's long position.| Lloyds Banking vs. National Bank Holdings | Lloyds Banking vs. Tradegate AG Wertpapierhandelsbank | Lloyds Banking vs. GUARDANT HEALTH CL | Lloyds Banking vs. National Health Investors |
| VARIOUS EATERIES vs. McDonalds | VARIOUS EATERIES vs. Chipotle Mexican Grill | VARIOUS EATERIES vs. Superior Plus Corp | VARIOUS EATERIES vs. NMI Holdings |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |