Correlation Between Lufax Holding and Cohen
Can any of the company-specific risk be diversified away by investing in both Lufax Holding and Cohen 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 Cohen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lufax Holding and Cohen Company, you can compare the effects of market volatilities on Lufax Holding and Cohen 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 Cohen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lufax Holding and Cohen.
Diversification Opportunities for Lufax Holding and Cohen
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Lufax and Cohen is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Lufax Holding and Cohen Company in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cohen Company 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 Cohen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cohen Company has no effect on the direction of Lufax Holding i.e., Lufax Holding and Cohen go up and down completely randomly.
Pair Corralation between Lufax Holding and Cohen
Allowing for the 90-day total investment horizon Lufax Holding is expected to generate 2.71 times more return on investment than Cohen. However, Lufax Holding is 2.71 times more volatile than Cohen Company. It trades about -0.01 of its potential returns per unit of risk. Cohen Company is currently generating about -0.15 per unit of risk. If you would invest 239.00 in Lufax Holding on November 3, 2024 and sell it today you would lose (8.00) from holding Lufax Holding or give up 3.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lufax Holding vs. Cohen Company
Performance |
| Timeline |
| Lufax Holding |
| Cohen Company |
Lufax Holding and Cohen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lufax Holding and Cohen
The main advantage of trading using opposite Lufax Holding and Cohen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lufax Holding position performs unexpectedly, Cohen 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 Cohen will offset losses from the drop in Cohen's long position.| Lufax Holding vs. 360 Finance | Lufax Holding vs. Atlanticus Holdings | Lufax Holding vs. Qudian Inc | Lufax Holding vs. Enova International |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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