Correlation Between LPP SA and Igoria Trade
Can any of the company-specific risk be diversified away by investing in both LPP SA and Igoria Trade 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 Igoria Trade into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LPP SA and Igoria Trade SA, you can compare the effects of market volatilities on LPP SA and Igoria Trade 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 Igoria Trade. Check out your portfolio center. Please also check ongoing floating volatility patterns of LPP SA and Igoria Trade.
Diversification Opportunities for LPP SA and Igoria Trade
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between LPP and Igoria is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding LPP SA and Igoria Trade SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Igoria Trade 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 Igoria Trade. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Igoria Trade SA has no effect on the direction of LPP SA i.e., LPP SA and Igoria Trade go up and down completely randomly.
Pair Corralation between LPP SA and Igoria Trade
Assuming the 90 days trading horizon LPP SA is expected to generate 0.68 times more return on investment than Igoria Trade. However, LPP SA is 1.46 times less risky than Igoria Trade. It trades about 0.06 of its potential returns per unit of risk. Igoria Trade SA is currently generating about -0.04 per unit of risk. If you would invest 1,470,164 in LPP SA on August 26, 2024 and sell it today you would earn a total of 66,836 from holding LPP SA or generate 4.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 97.62% |
| Values | Daily Returns |
LPP SA vs. Igoria Trade SA
Performance |
| Timeline |
| LPP SA |
| Igoria Trade SA |
LPP SA and Igoria Trade Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LPP SA and Igoria Trade
The main advantage of trading using opposite LPP SA and Igoria Trade positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LPP SA position performs unexpectedly, Igoria Trade 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 Igoria Trade will offset losses from the drop in Igoria Trade's long position.| LPP SA vs. Esotiq Henderson SA | LPP SA vs. Asseco Business Solutions | LPP SA vs. Detalion Games SA | LPP SA vs. Asseco South Eastern |
| Igoria Trade vs. Asseco Business Solutions | Igoria Trade vs. Detalion Games SA | Igoria Trade vs. Asseco South Eastern | Igoria Trade vs. Movie Games 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Commodity Directory Find actively traded commodities issued by global exchanges |