Correlation Between Lotte Chemical and Loads
Specify exactly 2 symbols:
By analyzing existing cross correlation between Lotte Chemical Pakistan and Loads, you can compare the effects of market volatilities on Lotte Chemical and Loads 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 Lotte Chemical with a short position of Loads. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lotte Chemical and Loads.
Diversification Opportunities for Lotte Chemical and Loads
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Lotte and Loads is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Lotte Chemical Pakistan and Loads in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Loads and Lotte Chemical 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 Lotte Chemical Pakistan are associated (or correlated) with Loads. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Loads has no effect on the direction of Lotte Chemical i.e., Lotte Chemical and Loads go up and down completely randomly.
Pair Corralation between Lotte Chemical and Loads
Assuming the 90 days trading horizon Lotte Chemical Pakistan is expected to generate 0.76 times more return on investment than Loads. However, Lotte Chemical Pakistan is 1.31 times less risky than Loads. It trades about 0.21 of its potential returns per unit of risk. Loads is currently generating about 0.13 per unit of risk. If you would invest 2,006 in Lotte Chemical Pakistan on October 25, 2024 and sell it today you would earn a total of 220.00 from holding Lotte Chemical Pakistan or generate 10.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lotte Chemical Pakistan vs. Loads
Performance |
| Timeline |
| Lotte Chemical Pakistan |
| Loads |
Lotte Chemical and Loads Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lotte Chemical and Loads
The main advantage of trading using opposite Lotte Chemical and Loads positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lotte Chemical position performs unexpectedly, Loads 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 Loads will offset losses from the drop in Loads' long position.| Lotte Chemical vs. Murree Brewery | Lotte Chemical vs. Century Insurance | Lotte Chemical vs. JS Bank | Lotte Chemical vs. JS Global Banking |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |