Correlation Between Lufax Holding and Victory Integrity
Can any of the company-specific risk be diversified away by investing in both Lufax Holding and Victory Integrity 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 Victory Integrity into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lufax Holding and Victory Integrity Smallmid Cap, you can compare the effects of market volatilities on Lufax Holding and Victory Integrity 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 Victory Integrity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lufax Holding and Victory Integrity.
Diversification Opportunities for Lufax Holding and Victory Integrity
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Lufax and Victory is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Lufax Holding and Victory Integrity Smallmid Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Victory Integrity 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 Victory Integrity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Victory Integrity has no effect on the direction of Lufax Holding i.e., Lufax Holding and Victory Integrity go up and down completely randomly.
Pair Corralation between Lufax Holding and Victory Integrity
Allowing for the 90-day total investment horizon Lufax Holding is expected to generate 5.39 times more return on investment than Victory Integrity. However, Lufax Holding is 5.39 times more volatile than Victory Integrity Smallmid Cap. It trades about 0.07 of its potential returns per unit of risk. Victory Integrity Smallmid Cap is currently generating about 0.07 per unit of risk. If you would invest 141.00 in Lufax Holding on September 12, 2024 and sell it today you would earn a total of 125.00 from holding Lufax Holding or generate 88.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Lufax Holding vs. Victory Integrity Smallmid Cap
Performance |
| Timeline |
| Lufax Holding |
| Victory Integrity |
Lufax Holding and Victory Integrity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lufax Holding and Victory Integrity
The main advantage of trading using opposite Lufax Holding and Victory Integrity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lufax Holding position performs unexpectedly, Victory Integrity 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 Victory Integrity will offset losses from the drop in Victory Integrity's long position.| Lufax Holding vs. Victory Integrity Smallmid Cap | Lufax Holding vs. Hilton Worldwide Holdings | Lufax Holding vs. NVIDIA | Lufax Holding vs. JPMorgan Chase Co |
| Victory Integrity vs. Victory Trivalent International | Victory Integrity vs. Victory Diversified Stock | Victory Integrity vs. Victory Sophus Emerging | Victory Integrity vs. Victory Diversified Stock |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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