Correlation Between Lufax Holding and Vinci Partners
Can any of the company-specific risk be diversified away by investing in both Lufax Holding and Vinci Partners 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 Vinci Partners into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lufax Holding and Vinci Partners Investments, you can compare the effects of market volatilities on Lufax Holding and Vinci Partners 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 Vinci Partners. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lufax Holding and Vinci Partners.
Diversification Opportunities for Lufax Holding and Vinci Partners
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lufax and Vinci is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Lufax Holding and Vinci Partners Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vinci Partners Inves 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 Vinci Partners. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vinci Partners Inves has no effect on the direction of Lufax Holding i.e., Lufax Holding and Vinci Partners go up and down completely randomly.
Pair Corralation between Lufax Holding and Vinci Partners
Allowing for the 90-day total investment horizon Lufax Holding is expected to under-perform the Vinci Partners. In addition to that, Lufax Holding is 2.64 times more volatile than Vinci Partners Investments. It trades about -0.03 of its total potential returns per unit of risk. Vinci Partners Investments is currently generating about -0.03 per unit of volatility. If you would invest 1,029 in Vinci Partners Investments on August 31, 2024 and sell it today you would lose (11.00) from holding Vinci Partners Investments or give up 1.07% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lufax Holding vs. Vinci Partners Investments
Performance |
| Timeline |
| Lufax Holding |
| Vinci Partners Inves |
Lufax Holding and Vinci Partners Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lufax Holding and Vinci Partners
The main advantage of trading using opposite Lufax Holding and Vinci Partners positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lufax Holding position performs unexpectedly, Vinci Partners 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 Vinci Partners will offset losses from the drop in Vinci Partners' long position.| Lufax Holding vs. 360 Finance | Lufax Holding vs. FinVolution Group | Lufax Holding vs. Qudian Inc | Lufax Holding vs. X Financial Class |
| Vinci Partners vs. Blue Owl Capital | Vinci Partners vs. P10 Inc | Vinci Partners vs. Diamond Hill Investment | Vinci Partners vs. Cion Investment Corp |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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