Correlation Between LeanLife Health and SSC Security
Can any of the company-specific risk be diversified away by investing in both LeanLife Health and SSC Security 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 LeanLife Health and SSC Security into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LeanLife Health and SSC Security Services, you can compare the effects of market volatilities on LeanLife Health and SSC Security 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 LeanLife Health with a short position of SSC Security. Check out your portfolio center. Please also check ongoing floating volatility patterns of LeanLife Health and SSC Security.
Diversification Opportunities for LeanLife Health and SSC Security
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between LeanLife and SSC is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding LeanLife Health and SSC Security Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SSC Security Services and LeanLife Health 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 LeanLife Health are associated (or correlated) with SSC Security. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SSC Security Services has no effect on the direction of LeanLife Health i.e., LeanLife Health and SSC Security go up and down completely randomly.
Pair Corralation between LeanLife Health and SSC Security
Assuming the 90 days horizon LeanLife Health is expected to generate 2.59 times more return on investment than SSC Security. However, LeanLife Health is 2.59 times more volatile than SSC Security Services. It trades about 0.02 of its potential returns per unit of risk. SSC Security Services is currently generating about 0.02 per unit of risk. If you would invest 1.48 in LeanLife Health on August 31, 2024 and sell it today you would lose (0.98) from holding LeanLife Health or give up 66.22% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
LeanLife Health vs. SSC Security Services
Performance |
| Timeline |
| LeanLife Health |
| SSC Security Services |
LeanLife Health and SSC Security Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LeanLife Health and SSC Security
The main advantage of trading using opposite LeanLife Health and SSC Security positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LeanLife Health position performs unexpectedly, SSC Security 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 SSC Security will offset losses from the drop in SSC Security's long position.| LeanLife Health vs. The A2 Milk | LeanLife Health vs. Altavoz Entertainment | LeanLife Health vs. Artisan Consumer Goods | LeanLife Health vs. General Mills |
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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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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