Correlation Between LSI Software and Baked Games
Can any of the company-specific risk be diversified away by investing in both LSI Software and Baked 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 LSI Software and Baked Games 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 Baked Games SA, you can compare the effects of market volatilities on LSI Software and Baked 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 LSI Software with a short position of Baked Games. Check out your portfolio center. Please also check ongoing floating volatility patterns of LSI Software and Baked Games.
Diversification Opportunities for LSI Software and Baked Games
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between LSI and Baked is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding LSI Software SA and Baked Games SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baked Games 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 Baked Games. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baked Games SA has no effect on the direction of LSI Software i.e., LSI Software and Baked Games go up and down completely randomly.
Pair Corralation between LSI Software and Baked Games
Assuming the 90 days trading horizon LSI Software SA is expected to generate 0.46 times more return on investment than Baked Games. However, LSI Software SA is 2.15 times less risky than Baked Games. It trades about 0.16 of its potential returns per unit of risk. Baked Games SA is currently generating about 0.01 per unit of risk. If you would invest 1,470 in LSI Software SA on September 1, 2024 and sell it today you would earn a total of 80.00 from holding LSI Software SA or generate 5.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
LSI Software SA vs. Baked Games SA
Performance |
| Timeline |
| LSI Software SA |
| Baked Games SA |
LSI Software and Baked Games Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LSI Software and Baked Games
The main advantage of trading using opposite LSI Software and Baked Games positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LSI Software position performs unexpectedly, Baked 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 Baked Games will offset losses from the drop in Baked Games' long position.| LSI Software vs. Mlk Foods Public | LSI Software vs. Intersport Polska SA | LSI Software vs. PLAYWAY SA | LSI Software vs. Drago entertainment SA |
| Baked Games vs. TEN SQUARE GAMES | Baked Games vs. Mlk Foods Public | Baked Games vs. Enter Air SA | Baked Games vs. LSI 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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