Correlation Between LSI Software and Vakomtek
Can any of the company-specific risk be diversified away by investing in both LSI Software and Vakomtek 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 Vakomtek 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 Vakomtek, you can compare the effects of market volatilities on LSI Software and Vakomtek 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 Vakomtek. Check out your portfolio center. Please also check ongoing floating volatility patterns of LSI Software and Vakomtek.
Diversification Opportunities for LSI Software and Vakomtek
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between LSI and Vakomtek is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding LSI Software SA and Vakomtek in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vakomtek 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 Vakomtek. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vakomtek has no effect on the direction of LSI Software i.e., LSI Software and Vakomtek go up and down completely randomly.
Pair Corralation between LSI Software and Vakomtek
Assuming the 90 days trading horizon LSI Software is expected to generate 1.51 times less return on investment than Vakomtek. But when comparing it to its historical volatility, LSI Software SA is 1.04 times less risky than Vakomtek. It trades about 0.17 of its potential returns per unit of risk. Vakomtek is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 92.00 in Vakomtek on August 30, 2024 and sell it today you would earn a total of 2.00 from holding Vakomtek or generate 2.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 23.81% |
| Values | Daily Returns |
LSI Software SA vs. Vakomtek
Performance |
| Timeline |
| LSI Software SA |
| Vakomtek |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
LSI Software and Vakomtek Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LSI Software and Vakomtek
The main advantage of trading using opposite LSI Software and Vakomtek positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LSI Software position performs unexpectedly, Vakomtek 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 Vakomtek will offset losses from the drop in Vakomtek's long position.| LSI Software vs. Inter Cars SA | LSI Software vs. Movie Games SA | LSI Software vs. Pyramid Games SA | LSI Software vs. TEN SQUARE GAMES |
| Vakomtek vs. MW Trade SA | Vakomtek vs. Globe Trade Centre | Vakomtek vs. LSI Software SA | Vakomtek vs. Road Studio 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |