Correlation Between LSI Software and Centrum Finansowe
Can any of the company-specific risk be diversified away by investing in both LSI Software and Centrum Finansowe 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 Centrum Finansowe 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 Centrum Finansowe Banku, you can compare the effects of market volatilities on LSI Software and Centrum Finansowe 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 Centrum Finansowe. Check out your portfolio center. Please also check ongoing floating volatility patterns of LSI Software and Centrum Finansowe.
Diversification Opportunities for LSI Software and Centrum Finansowe
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between LSI and Centrum is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding LSI Software SA and Centrum Finansowe Banku in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Centrum Finansowe Banku 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 Centrum Finansowe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Centrum Finansowe Banku has no effect on the direction of LSI Software i.e., LSI Software and Centrum Finansowe go up and down completely randomly.
Pair Corralation between LSI Software and Centrum Finansowe
Assuming the 90 days trading horizon LSI Software SA is expected to generate 0.67 times more return on investment than Centrum Finansowe. However, LSI Software SA is 1.49 times less risky than Centrum Finansowe. It trades about 0.3 of its potential returns per unit of risk. Centrum Finansowe Banku is currently generating about 0.06 per unit of risk. If you would invest 1,470 in LSI Software SA on September 12, 2024 and sell it today you would earn a total of 190.00 from holding LSI Software SA or generate 12.93% 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. Centrum Finansowe Banku
Performance |
| Timeline |
| LSI Software SA |
| Centrum Finansowe Banku |
LSI Software and Centrum Finansowe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LSI Software and Centrum Finansowe
The main advantage of trading using opposite LSI Software and Centrum Finansowe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LSI Software position performs unexpectedly, Centrum Finansowe 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 Centrum Finansowe will offset losses from the drop in Centrum Finansowe's long position.| LSI Software vs. Skyline Investment SA | LSI Software vs. Immobile | LSI Software vs. Road Studio SA | LSI Software vs. MCI Management SA |
| Centrum Finansowe vs. Carlson Investments SA | Centrum Finansowe vs. Asseco Business Solutions | Centrum Finansowe vs. Detalion Games SA | Centrum Finansowe vs. Asseco South Eastern |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |