Correlation Between Logan Ridge and EQUINOR
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By analyzing existing cross correlation between Logan Ridge Finance and EQUINOR ASA, you can compare the effects of market volatilities on Logan Ridge and EQUINOR 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 Logan Ridge with a short position of EQUINOR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Logan Ridge and EQUINOR.
Diversification Opportunities for Logan Ridge and EQUINOR
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Logan and EQUINOR is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Logan Ridge Finance and EQUINOR ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EQUINOR ASA and Logan Ridge 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 Logan Ridge Finance are associated (or correlated) with EQUINOR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EQUINOR ASA has no effect on the direction of Logan Ridge i.e., Logan Ridge and EQUINOR go up and down completely randomly.
Pair Corralation between Logan Ridge and EQUINOR
Given the investment horizon of 90 days Logan Ridge Finance is expected to generate 0.66 times more return on investment than EQUINOR. However, Logan Ridge Finance is 1.51 times less risky than EQUINOR. It trades about 0.14 of its potential returns per unit of risk. EQUINOR ASA is currently generating about -0.09 per unit of risk. If you would invest 2,514 in Logan Ridge Finance on September 2, 2024 and sell it today you would earn a total of 86.00 from holding Logan Ridge Finance or generate 3.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 90.48% |
| Values | Daily Returns |
Logan Ridge Finance vs. EQUINOR ASA
Performance |
| Timeline |
| Logan Ridge Finance |
| EQUINOR ASA |
Logan Ridge and EQUINOR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Logan Ridge and EQUINOR
The main advantage of trading using opposite Logan Ridge and EQUINOR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Logan Ridge position performs unexpectedly, EQUINOR 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 EQUINOR will offset losses from the drop in EQUINOR's long position.| Logan Ridge vs. Badger Infrastructure Solutions | Logan Ridge vs. Portman Ridge Finance | Logan Ridge vs. Inotiv Inc | Logan Ridge vs. Phenixfin |
| EQUINOR vs. Cleantech Power Corp | EQUINOR vs. Under Armour C | EQUINOR vs. Logan Ridge Finance | EQUINOR vs. Verde Clean Fuels |
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 Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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