Correlation Between LFM Properties and Axelum Resources
Can any of the company-specific risk be diversified away by investing in both LFM Properties and Axelum Resources 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 LFM Properties and Axelum Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LFM Properties Corp and Axelum Resources Corp, you can compare the effects of market volatilities on LFM Properties and Axelum Resources 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 LFM Properties with a short position of Axelum Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of LFM Properties and Axelum Resources.
Diversification Opportunities for LFM Properties and Axelum Resources
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between LFM and Axelum is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding LFM Properties Corp and Axelum Resources Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Axelum Resources Corp and LFM Properties 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 LFM Properties Corp are associated (or correlated) with Axelum Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Axelum Resources Corp has no effect on the direction of LFM Properties i.e., LFM Properties and Axelum Resources go up and down completely randomly.
Pair Corralation between LFM Properties and Axelum Resources
Assuming the 90 days trading horizon LFM Properties Corp is expected to under-perform the Axelum Resources. In addition to that, LFM Properties is 4.06 times more volatile than Axelum Resources Corp. It trades about 0.0 of its total potential returns per unit of risk. Axelum Resources Corp is currently generating about 0.0 per unit of volatility. If you would invest 214.00 in Axelum Resources Corp on September 1, 2024 and sell it today you would lose (7.00) from holding Axelum Resources Corp or give up 3.27% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 61.16% |
| Values | Daily Returns |
LFM Properties Corp vs. Axelum Resources Corp
Performance |
| Timeline |
| LFM Properties Corp |
| Axelum Resources Corp |
LFM Properties and Axelum Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LFM Properties and Axelum Resources
The main advantage of trading using opposite LFM Properties and Axelum Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LFM Properties position performs unexpectedly, Axelum Resources 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 Axelum Resources will offset losses from the drop in Axelum Resources' long position.| LFM Properties vs. Concepcion Industrial Corp | LFM Properties vs. Apex Mining Co | LFM Properties vs. Metropolitan Bank Trust | LFM Properties vs. Philex Mining Corp |
| Axelum Resources vs. Jollibee Foods Corp | Axelum Resources vs. Top Frontier Investment | Axelum Resources vs. Semirara Mining Corp | Axelum Resources vs. Globe Telecom |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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