Correlation Between Lufax Holding and Roth CH
Can any of the company-specific risk be diversified away by investing in both Lufax Holding and Roth CH 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 Roth CH into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lufax Holding and Roth CH Acquisition, you can compare the effects of market volatilities on Lufax Holding and Roth CH 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 Roth CH. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lufax Holding and Roth CH.
Diversification Opportunities for Lufax Holding and Roth CH
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lufax and Roth is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Lufax Holding and Roth CH Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Roth CH Acquisition 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 Roth CH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Roth CH Acquisition has no effect on the direction of Lufax Holding i.e., Lufax Holding and Roth CH go up and down completely randomly.
Pair Corralation between Lufax Holding and Roth CH
Allowing for the 90-day total investment horizon Lufax Holding is expected to under-perform the Roth CH. But the stock apears to be less risky and, when comparing its historical volatility, Lufax Holding is 7.41 times less risky than Roth CH. The stock trades about -0.23 of its potential returns per unit of risk. The Roth CH Acquisition is currently generating about 0.58 of returns per unit of risk over similar time horizon. If you would invest 4.65 in Roth CH Acquisition on August 28, 2024 and sell it today you would earn a total of 37.35 from holding Roth CH Acquisition or generate 803.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Lufax Holding vs. Roth CH Acquisition
Performance |
| Timeline |
| Lufax Holding |
| Roth CH Acquisition |
Lufax Holding and Roth CH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lufax Holding and Roth CH
The main advantage of trading using opposite Lufax Holding and Roth CH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lufax Holding position performs unexpectedly, Roth CH 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 Roth CH will offset losses from the drop in Roth CH's long position.| Lufax Holding vs. SLM Corp | Lufax Holding vs. Orix Corp Ads | Lufax Holding vs. FirstCash | Lufax Holding vs. Medallion Financial Corp |
| Roth CH vs. PowerUp Acquisition Corp | Roth CH vs. Aurora Innovation | Roth CH vs. HUMANA INC | Roth CH vs. Aquagold 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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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