Correlation Between LM Funding and Nisun International
Can any of the company-specific risk be diversified away by investing in both LM Funding and Nisun International 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 LM Funding and Nisun International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LM Funding America and Nisun International Enterprise, you can compare the effects of market volatilities on LM Funding and Nisun International 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 LM Funding with a short position of Nisun International. Check out your portfolio center. Please also check ongoing floating volatility patterns of LM Funding and Nisun International.
Diversification Opportunities for LM Funding and Nisun International
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between LMFA and Nisun is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding LM Funding America and Nisun International Enterprise in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nisun International and LM Funding 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 LM Funding America are associated (or correlated) with Nisun International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nisun International has no effect on the direction of LM Funding i.e., LM Funding and Nisun International go up and down completely randomly.
Pair Corralation between LM Funding and Nisun International
Given the investment horizon of 90 days LM Funding America is expected to generate 0.91 times more return on investment than Nisun International. However, LM Funding America is 1.1 times less risky than Nisun International. It trades about -0.03 of its potential returns per unit of risk. Nisun International Enterprise is currently generating about -0.04 per unit of risk. If you would invest 306.00 in LM Funding America on August 28, 2024 and sell it today you would lose (26.00) from holding LM Funding America or give up 8.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
LM Funding America vs. Nisun International Enterprise
Performance |
| Timeline |
| LM Funding America |
| Nisun International |
LM Funding and Nisun International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LM Funding and Nisun International
The main advantage of trading using opposite LM Funding and Nisun International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LM Funding position performs unexpectedly, Nisun International 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 Nisun International will offset losses from the drop in Nisun International's long position.| LM Funding vs. X Financial Class | LM Funding vs. Nisun International Enterprise | LM Funding vs. Sentage Holdings | LM Funding vs. Cosmos Group Holdings |
| Nisun International vs. Sentage Holdings | Nisun International vs. Yirendai | Nisun International vs. Lexinfintech Holdings | Nisun International vs. Lufax Holding |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |