Correlation Between LPP SA and 3R Games
Can any of the company-specific risk be diversified away by investing in both LPP SA and 3R Games 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 LPP SA and 3R Games into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LPP SA and 3R Games SA, you can compare the effects of market volatilities on LPP SA and 3R Games 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 LPP SA with a short position of 3R Games. Check out your portfolio center. Please also check ongoing floating volatility patterns of LPP SA and 3R Games.
Diversification Opportunities for LPP SA and 3R Games
Excellent diversification
The 3 months correlation between LPP and 3RG is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding LPP SA and 3R Games SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 3R Games SA and LPP SA 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 LPP SA are associated (or correlated) with 3R Games. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 3R Games SA has no effect on the direction of LPP SA i.e., LPP SA and 3R Games go up and down completely randomly.
Pair Corralation between LPP SA and 3R Games
Assuming the 90 days trading horizon LPP SA is expected to generate 54.71 times less return on investment than 3R Games. But when comparing it to its historical volatility, LPP SA is 1.37 times less risky than 3R Games. It trades about 0.0 of its potential returns per unit of risk. 3R Games SA is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 27.00 in 3R Games SA on August 30, 2024 and sell it today you would earn a total of 3.00 from holding 3R Games SA or generate 11.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
LPP SA vs. 3R Games SA
Performance |
| Timeline |
| LPP SA |
| 3R Games SA |
LPP SA and 3R Games Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LPP SA and 3R Games
The main advantage of trading using opposite LPP SA and 3R Games positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LPP SA position performs unexpectedly, 3R Games 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 3R Games will offset losses from the drop in 3R Games' long position.| LPP SA vs. Monnari Trade SA | LPP SA vs. Esotiq Henderson SA | LPP SA vs. Asseco Business Solutions | LPP SA vs. Detalion Games SA |
| 3R Games vs. Allegroeu SA | 3R Games vs. Asseco Business Solutions | 3R Games vs. Detalion Games SA | 3R Games vs. CFI Holding SA |
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.
Other Complementary Tools
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |