Correlation Between Lufax Holding and Sunlight Financial
Can any of the company-specific risk be diversified away by investing in both Lufax Holding and Sunlight Financial 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 Sunlight Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lufax Holding and Sunlight Financial Holdings, you can compare the effects of market volatilities on Lufax Holding and Sunlight Financial 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 Sunlight Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lufax Holding and Sunlight Financial.
Diversification Opportunities for Lufax Holding and Sunlight Financial
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Lufax and Sunlight is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Lufax Holding and Sunlight Financial Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sunlight Financial 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 Sunlight Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sunlight Financial has no effect on the direction of Lufax Holding i.e., Lufax Holding and Sunlight Financial go up and down completely randomly.
Pair Corralation between Lufax Holding and Sunlight Financial
If you would invest 47.00 in Sunlight Financial Holdings on August 28, 2024 and sell it today you would earn a total of 0.00 from holding Sunlight Financial Holdings or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Lufax Holding vs. Sunlight Financial Holdings
Performance |
| Timeline |
| Lufax Holding |
| Sunlight Financial |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Lufax Holding and Sunlight Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lufax Holding and Sunlight Financial
The main advantage of trading using opposite Lufax Holding and Sunlight Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lufax Holding position performs unexpectedly, Sunlight Financial 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 Sunlight Financial will offset losses from the drop in Sunlight Financial's long position.| Lufax Holding vs. SLM Corp | Lufax Holding vs. Orix Corp Ads | Lufax Holding vs. FirstCash | Lufax Holding vs. Medallion Financial Corp |
| Sunlight Financial vs. X Financial Class | Sunlight Financial vs. LM Funding America | Sunlight Financial vs. Nisun International Enterprise | Sunlight Financial vs. Sentage Holdings |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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