Correlation Between LOTTOTECH and CIM FINANCIAL
Can any of the company-specific risk be diversified away by investing in both LOTTOTECH and CIM FINANCIAL 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 LOTTOTECH and CIM FINANCIAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LOTTOTECH LTD and CIM FINANCIAL SERVICES, you can compare the effects of market volatilities on LOTTOTECH and CIM FINANCIAL 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 LOTTOTECH with a short position of CIM FINANCIAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of LOTTOTECH and CIM FINANCIAL.
Diversification Opportunities for LOTTOTECH and CIM FINANCIAL
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between LOTTOTECH and CIM is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding LOTTOTECH LTD and CIM FINANCIAL SERVICES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CIM FINANCIAL SERVICES and LOTTOTECH 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 LOTTOTECH LTD are associated (or correlated) with CIM FINANCIAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CIM FINANCIAL SERVICES has no effect on the direction of LOTTOTECH i.e., LOTTOTECH and CIM FINANCIAL go up and down completely randomly.
Pair Corralation between LOTTOTECH and CIM FINANCIAL
Assuming the 90 days trading horizon LOTTOTECH is expected to generate 10.04 times less return on investment than CIM FINANCIAL. But when comparing it to its historical volatility, LOTTOTECH LTD is 2.65 times less risky than CIM FINANCIAL. It trades about 0.06 of its potential returns per unit of risk. CIM FINANCIAL SERVICES is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 1,385 in CIM FINANCIAL SERVICES on November 5, 2024 and sell it today you would earn a total of 55.00 from holding CIM FINANCIAL SERVICES or generate 3.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
LOTTOTECH LTD vs. CIM FINANCIAL SERVICES
Performance |
| Timeline |
| LOTTOTECH LTD |
| CIM FINANCIAL SERVICES |
LOTTOTECH and CIM FINANCIAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LOTTOTECH and CIM FINANCIAL
The main advantage of trading using opposite LOTTOTECH and CIM FINANCIAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LOTTOTECH position performs unexpectedly, CIM FINANCIAL 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 CIM FINANCIAL will offset losses from the drop in CIM FINANCIAL's long position.| LOTTOTECH vs. CAVELL TOURISTIC INVESTMENTS | LOTTOTECH vs. MAURITIUS CHEMICAL FERTILIZER | LOTTOTECH vs. CIM FINANCIAL SERVICES | LOTTOTECH vs. ASTORIA INVESTMENT LTD |
| CIM FINANCIAL vs. AGAPE GLOBAL INVESTMENTS | CIM FINANCIAL vs. ELITE MEAT PROCESSORS | CIM FINANCIAL vs. ASTORIA INVESTMENT LTD | CIM FINANCIAL vs. NATIONAL INVESTMENT TRUST |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |