Correlation Between Lufax Holding and Greenlight Capital
Can any of the company-specific risk be diversified away by investing in both Lufax Holding and Greenlight Capital 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 Greenlight Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lufax Holding and Greenlight Capital Re, you can compare the effects of market volatilities on Lufax Holding and Greenlight Capital 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 Greenlight Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lufax Holding and Greenlight Capital.
Diversification Opportunities for Lufax Holding and Greenlight Capital
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lufax and Greenlight is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Lufax Holding and Greenlight Capital Re in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Greenlight Capital 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 Greenlight Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Greenlight Capital has no effect on the direction of Lufax Holding i.e., Lufax Holding and Greenlight Capital go up and down completely randomly.
Pair Corralation between Lufax Holding and Greenlight Capital
Allowing for the 90-day total investment horizon Lufax Holding is expected to generate 1.95 times less return on investment than Greenlight Capital. In addition to that, Lufax Holding is 3.16 times more volatile than Greenlight Capital Re. It trades about 0.01 of its total potential returns per unit of risk. Greenlight Capital Re is currently generating about 0.09 per unit of volatility. If you would invest 780.00 in Greenlight Capital Re on August 24, 2024 and sell it today you would earn a total of 720.00 from holding Greenlight Capital Re or generate 92.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Lufax Holding vs. Greenlight Capital Re
Performance |
| Timeline |
| Lufax Holding |
| Greenlight Capital |
Lufax Holding and Greenlight Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lufax Holding and Greenlight Capital
The main advantage of trading using opposite Lufax Holding and Greenlight Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lufax Holding position performs unexpectedly, Greenlight Capital 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 Greenlight Capital will offset losses from the drop in Greenlight Capital's long position.| Lufax Holding vs. 360 Finance | Lufax Holding vs. FinVolution Group | Lufax Holding vs. Qudian Inc | Lufax Holding vs. X Financial Class |
| Greenlight Capital vs. Reinsurance Group of | Greenlight Capital vs. Siriuspoint | Greenlight Capital vs. SCOR PK | Greenlight Capital vs. SiriusPoint |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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