Correlation Between LSI Software and Aplisens
Can any of the company-specific risk be diversified away by investing in both LSI Software and Aplisens 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 LSI Software and Aplisens into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LSI Software SA and Aplisens SA, you can compare the effects of market volatilities on LSI Software and Aplisens 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 LSI Software with a short position of Aplisens. Check out your portfolio center. Please also check ongoing floating volatility patterns of LSI Software and Aplisens.
Diversification Opportunities for LSI Software and Aplisens
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between LSI and Aplisens is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding LSI Software SA and Aplisens SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aplisens SA and LSI Software 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 LSI Software SA are associated (or correlated) with Aplisens. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aplisens SA has no effect on the direction of LSI Software i.e., LSI Software and Aplisens go up and down completely randomly.
Pair Corralation between LSI Software and Aplisens
Assuming the 90 days trading horizon LSI Software SA is expected to generate 1.13 times more return on investment than Aplisens. However, LSI Software is 1.13 times more volatile than Aplisens SA. It trades about 0.06 of its potential returns per unit of risk. Aplisens SA is currently generating about -0.12 per unit of risk. If you would invest 1,550 in LSI Software SA on September 12, 2024 and sell it today you would earn a total of 110.00 from holding LSI Software SA or generate 7.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
LSI Software SA vs. Aplisens SA
Performance |
| Timeline |
| LSI Software SA |
| Aplisens SA |
LSI Software and Aplisens Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LSI Software and Aplisens
The main advantage of trading using opposite LSI Software and Aplisens positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LSI Software position performs unexpectedly, Aplisens 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 Aplisens will offset losses from the drop in Aplisens' long position.| LSI Software vs. Skyline Investment SA | LSI Software vs. Immobile | LSI Software vs. Road Studio SA | LSI Software vs. MCI Management SA |
| Aplisens vs. mBank SA | Aplisens vs. Skyline Investment SA | Aplisens vs. ING Bank lski | Aplisens vs. MW Trade 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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