Correlation Between Lufax Holding and BlackRock TCP
Can any of the company-specific risk be diversified away by investing in both Lufax Holding and BlackRock TCP 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 BlackRock TCP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lufax Holding and BlackRock TCP Capital, you can compare the effects of market volatilities on Lufax Holding and BlackRock TCP 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 BlackRock TCP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lufax Holding and BlackRock TCP.
Diversification Opportunities for Lufax Holding and BlackRock TCP
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Lufax and BlackRock is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Lufax Holding and BlackRock TCP Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BlackRock TCP 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 BlackRock TCP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BlackRock TCP Capital has no effect on the direction of Lufax Holding i.e., Lufax Holding and BlackRock TCP go up and down completely randomly.
Pair Corralation between Lufax Holding and BlackRock TCP
Allowing for the 90-day total investment horizon Lufax Holding is expected to generate 3.09 times more return on investment than BlackRock TCP. However, Lufax Holding is 3.09 times more volatile than BlackRock TCP Capital. It trades about 0.15 of its potential returns per unit of risk. BlackRock TCP Capital is currently generating about 0.15 per unit of risk. If you would invest 252.00 in Lufax Holding on November 18, 2024 and sell it today you would earn a total of 36.00 from holding Lufax Holding or generate 14.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lufax Holding vs. BlackRock TCP Capital
Performance |
| Timeline |
| Lufax Holding |
| BlackRock TCP Capital |
Lufax Holding and BlackRock TCP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lufax Holding and BlackRock TCP
The main advantage of trading using opposite Lufax Holding and BlackRock TCP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lufax Holding position performs unexpectedly, BlackRock TCP 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 BlackRock TCP will offset losses from the drop in BlackRock TCP's long position.| Lufax Holding vs. Visa Class A | Lufax Holding vs. PayPal Holdings | Lufax Holding vs. Capital One Financial | Lufax Holding vs. Upstart Holdings |
| BlackRock TCP vs. Triplepoint Venture Growth | BlackRock TCP vs. Sixth Street Specialty | BlackRock TCP vs. Golub Capital BDC | BlackRock TCP vs. New Mountain Finance |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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