Correlation Between LOBO EV and Lotus Technology
Can any of the company-specific risk be diversified away by investing in both LOBO EV and Lotus Technology 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 LOBO EV and Lotus Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LOBO EV TECHNOLOGIES and Lotus Technology American, you can compare the effects of market volatilities on LOBO EV and Lotus Technology 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 LOBO EV with a short position of Lotus Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of LOBO EV and Lotus Technology.
Diversification Opportunities for LOBO EV and Lotus Technology
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between LOBO and Lotus is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding LOBO EV TECHNOLOGIES and Lotus Technology American in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lotus Technology American and LOBO EV 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 LOBO EV TECHNOLOGIES are associated (or correlated) with Lotus Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lotus Technology American has no effect on the direction of LOBO EV i.e., LOBO EV and Lotus Technology go up and down completely randomly.
Pair Corralation between LOBO EV and Lotus Technology
Given the investment horizon of 90 days LOBO EV TECHNOLOGIES is expected to generate 2.47 times more return on investment than Lotus Technology. However, LOBO EV is 2.47 times more volatile than Lotus Technology American. It trades about -0.04 of its potential returns per unit of risk. Lotus Technology American is currently generating about -0.11 per unit of risk. If you would invest 245.00 in LOBO EV TECHNOLOGIES on August 30, 2024 and sell it today you would lose (23.00) from holding LOBO EV TECHNOLOGIES or give up 9.39% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
LOBO EV TECHNOLOGIES vs. Lotus Technology American
Performance |
| Timeline |
| LOBO EV TECHNOLOGIES |
| Lotus Technology American |
LOBO EV and Lotus Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LOBO EV and Lotus Technology
The main advantage of trading using opposite LOBO EV and Lotus Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LOBO EV position performs unexpectedly, Lotus Technology 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 Lotus Technology will offset losses from the drop in Lotus Technology's long position.| LOBO EV vs. Aldel Financial II | LOBO EV vs. Western Acquisition Ventures | LOBO EV vs. Capital Clean Energy | LOBO EV vs. NetEase |
| Lotus Technology vs. Evolution Gaming Group | Lotus Technology vs. Playstudios | Lotus Technology vs. GameStop Corp | Lotus Technology vs. Senmiao Technology |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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