Correlation Between LPP SA and Apator SA
Can any of the company-specific risk be diversified away by investing in both LPP SA and Apator 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 LPP SA and Apator SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LPP SA and Apator SA, you can compare the effects of market volatilities on LPP SA and Apator 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 LPP SA with a short position of Apator SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of LPP SA and Apator SA.
Diversification Opportunities for LPP SA and Apator SA
Very good diversification
The 3 months correlation between LPP and Apator is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding LPP SA and Apator SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apator 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 Apator SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apator SA has no effect on the direction of LPP SA i.e., LPP SA and Apator SA go up and down completely randomly.
Pair Corralation between LPP SA and Apator SA
Assuming the 90 days trading horizon LPP SA is expected to under-perform the Apator SA. In addition to that, LPP SA is 1.09 times more volatile than Apator SA. It trades about -0.2 of its total potential returns per unit of risk. Apator SA is currently generating about 0.11 per unit of volatility. If you would invest 1,702 in Apator SA on October 9, 2024 and sell it today you would earn a total of 36.00 from holding Apator SA or generate 2.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
LPP SA vs. Apator SA
Performance |
| Timeline |
| LPP SA |
| Apator SA |
LPP SA and Apator SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LPP SA and Apator SA
The main advantage of trading using opposite LPP SA and Apator SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LPP SA position performs unexpectedly, Apator 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 Apator SA will offset losses from the drop in Apator SA's long position.| LPP SA vs. Mlk Foods Public | LPP SA vs. BNP Paribas Bank | LPP SA vs. Movie Games SA | LPP SA vs. Ultimate Games SA |
| Apator SA vs. BNP Paribas Bank | Apator SA vs. Carlson Investments SA | Apator SA vs. Echo Investment SA | Apator SA vs. Quantum Software 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Global Correlations Find global opportunities by holding instruments from different markets |