Correlation Between Lemonade and WILLIAMS
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By analyzing existing cross correlation between Lemonade and WILLIAMS INC 775, you can compare the effects of market volatilities on Lemonade and WILLIAMS 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 Lemonade with a short position of WILLIAMS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lemonade and WILLIAMS.
Diversification Opportunities for Lemonade and WILLIAMS
Pay attention - limited upside
The 3 months correlation between Lemonade and WILLIAMS is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Lemonade and WILLIAMS INC 775 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WILLIAMS INC 775 and Lemonade 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 Lemonade are associated (or correlated) with WILLIAMS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WILLIAMS INC 775 has no effect on the direction of Lemonade i.e., Lemonade and WILLIAMS go up and down completely randomly.
Pair Corralation between Lemonade and WILLIAMS
Given the investment horizon of 90 days Lemonade is expected to generate 4.67 times more return on investment than WILLIAMS. However, Lemonade is 4.67 times more volatile than WILLIAMS INC 775. It trades about 0.15 of its potential returns per unit of risk. WILLIAMS INC 775 is currently generating about -0.01 per unit of risk. If you would invest 1,624 in Lemonade on August 27, 2024 and sell it today you would earn a total of 3,304 from holding Lemonade or generate 203.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 57.98% |
| Values | Daily Returns |
Lemonade vs. WILLIAMS INC 775
Performance |
| Timeline |
| Lemonade |
| WILLIAMS INC 775 |
Lemonade and WILLIAMS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lemonade and WILLIAMS
The main advantage of trading using opposite Lemonade and WILLIAMS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lemonade position performs unexpectedly, WILLIAMS 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 WILLIAMS will offset losses from the drop in WILLIAMS's long position.| Lemonade vs. Fiverr International | Lemonade vs. Pinterest | Lemonade vs. Upstart Holdings | Lemonade vs. Fastly Inc |
| WILLIAMS vs. Figs Inc | WILLIAMS vs. Vince Holding Corp | WILLIAMS vs. Nike Inc | WILLIAMS vs. Chester Mining |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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