Correlation Between Lonza Group and U Blox
Can any of the company-specific risk be diversified away by investing in both Lonza Group and U Blox 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 Lonza Group and U Blox into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lonza Group AG and U Blox Holding, you can compare the effects of market volatilities on Lonza Group and U Blox 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 Lonza Group with a short position of U Blox. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lonza Group and U Blox.
Diversification Opportunities for Lonza Group and U Blox
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lonza and UBXN is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Lonza Group AG and U Blox Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on U Blox Holding and Lonza Group 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 Lonza Group AG are associated (or correlated) with U Blox. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of U Blox Holding has no effect on the direction of Lonza Group i.e., Lonza Group and U Blox go up and down completely randomly.
Pair Corralation between Lonza Group and U Blox
Assuming the 90 days trading horizon Lonza Group AG is expected to generate 0.86 times more return on investment than U Blox. However, Lonza Group AG is 1.16 times less risky than U Blox. It trades about 0.02 of its potential returns per unit of risk. U Blox Holding is currently generating about -0.03 per unit of risk. If you would invest 53,541 in Lonza Group AG on November 27, 2024 and sell it today you would earn a total of 4,839 from holding Lonza Group AG or generate 9.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lonza Group AG vs. U Blox Holding
Performance |
| Timeline |
| Lonza Group AG |
| U Blox Holding |
Lonza Group and U Blox Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lonza Group and U Blox
The main advantage of trading using opposite Lonza Group and U Blox positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lonza Group position performs unexpectedly, U Blox 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 U Blox will offset losses from the drop in U Blox's long position.| Lonza Group vs. Sika AG | Lonza Group vs. Givaudan SA | Lonza Group vs. Geberit AG | Lonza Group vs. Swiss Life 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |