Correlation Between Lufax Holding and ClimateRock
Can any of the company-specific risk be diversified away by investing in both Lufax Holding and ClimateRock 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 Lufax Holding and ClimateRock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lufax Holding and ClimateRock Class A, you can compare the effects of market volatilities on Lufax Holding and ClimateRock 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 Lufax Holding with a short position of ClimateRock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lufax Holding and ClimateRock.
Diversification Opportunities for Lufax Holding and ClimateRock
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Lufax and ClimateRock is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Lufax Holding and ClimateRock Class A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ClimateRock Class and Lufax Holding 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 Lufax Holding are associated (or correlated) with ClimateRock. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ClimateRock Class has no effect on the direction of Lufax Holding i.e., Lufax Holding and ClimateRock go up and down completely randomly.
Pair Corralation between Lufax Holding and ClimateRock
Allowing for the 90-day total investment horizon Lufax Holding is expected to generate 24.53 times more return on investment than ClimateRock. However, Lufax Holding is 24.53 times more volatile than ClimateRock Class A. It trades about 0.02 of its potential returns per unit of risk. ClimateRock Class A is currently generating about 0.29 per unit of risk. If you would invest 274.00 in Lufax Holding on October 26, 2024 and sell it today you would earn a total of 4.00 from holding Lufax Holding or generate 1.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lufax Holding vs. ClimateRock Class A
Performance |
| Timeline |
| Lufax Holding |
| ClimateRock Class |
Lufax Holding and ClimateRock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lufax Holding and ClimateRock
The main advantage of trading using opposite Lufax Holding and ClimateRock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lufax Holding position performs unexpectedly, ClimateRock 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 ClimateRock will offset losses from the drop in ClimateRock's long position.| Lufax Holding vs. 360 Finance | Lufax Holding vs. FinVolution Group | Lufax Holding vs. Qudian Inc | Lufax Holding vs. X Financial Class |
| ClimateRock vs. AlphaVest Acquisition Corp | ClimateRock vs. Golden Star Acquisition | ClimateRock vs. Alpha One | ClimateRock vs. Manaris Corp |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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