Correlation Between Loop Energy and Legrand SA
Can any of the company-specific risk be diversified away by investing in both Loop Energy and Legrand SA 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 Loop Energy and Legrand SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Loop Energy and Legrand SA, you can compare the effects of market volatilities on Loop Energy and Legrand SA 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 Loop Energy with a short position of Legrand SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loop Energy and Legrand SA.
Diversification Opportunities for Loop Energy and Legrand SA
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Loop and Legrand is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Loop Energy and Legrand SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Legrand SA and Loop Energy 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 Loop Energy are associated (or correlated) with Legrand SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Legrand SA has no effect on the direction of Loop Energy i.e., Loop Energy and Legrand SA go up and down completely randomly.
Pair Corralation between Loop Energy and Legrand SA
If you would invest 9,890 in Legrand SA on November 3, 2024 and sell it today you would earn a total of 211.00 from holding Legrand SA or generate 2.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Loop Energy vs. Legrand SA
Performance |
| Timeline |
| Loop Energy |
| Legrand SA |
Loop Energy and Legrand SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loop Energy and Legrand SA
The main advantage of trading using opposite Loop Energy and Legrand SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loop Energy position performs unexpectedly, Legrand SA 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 Legrand SA will offset losses from the drop in Legrand SA's long position.| Loop Energy vs. Legrand SA ADR | Loop Energy vs. AFC Energy plc | Loop Energy vs. Sunrise New Energy | Loop Energy vs. Tantalus Systems Holding |
| Legrand SA vs. Tantalus Systems Holding | Legrand SA vs. Signify NV | Legrand SA vs. AFC Energy plc | Legrand SA vs. Loop Energy |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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