Correlation Between LG Display and Stingray
Can any of the company-specific risk be diversified away by investing in both LG Display and Stingray 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 LG Display and Stingray into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LG Display Co and Stingray Group, you can compare the effects of market volatilities on LG Display and Stingray 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 LG Display with a short position of Stingray. Check out your portfolio center. Please also check ongoing floating volatility patterns of LG Display and Stingray.
Diversification Opportunities for LG Display and Stingray
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between LPL and Stingray is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding LG Display Co and Stingray Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stingray Group and LG Display 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 LG Display Co are associated (or correlated) with Stingray. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stingray Group has no effect on the direction of LG Display i.e., LG Display and Stingray go up and down completely randomly.
Pair Corralation between LG Display and Stingray
Considering the 90-day investment horizon LG Display Co is expected to generate 1.96 times more return on investment than Stingray. However, LG Display is 1.96 times more volatile than Stingray Group. It trades about 0.14 of its potential returns per unit of risk. Stingray Group is currently generating about -0.21 per unit of risk. If you would invest 310.00 in LG Display Co on November 3, 2024 and sell it today you would earn a total of 13.00 from holding LG Display Co or generate 4.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 91.3% |
| Values | Daily Returns |
LG Display Co vs. Stingray Group
Performance |
| Timeline |
| LG Display |
| Stingray Group |
LG Display and Stingray Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LG Display and Stingray
The main advantage of trading using opposite LG Display and Stingray positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LG Display position performs unexpectedly, Stingray 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 Stingray will offset losses from the drop in Stingray's long position.| LG Display vs. VOXX International | LG Display vs. Emerson Radio | LG Display vs. Universal Electronics | LG Display vs. Sonos Inc |
| Stingray vs. KVH Industries | Stingray vs. Sphere Entertainment Co | Stingray vs. Hasbro Inc | Stingray vs. Iridium Communications |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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