Correlation Between Lumia and Naranja Standard
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By analyzing existing cross correlation between Lumia and Naranja Standard Poors, you can compare the effects of market volatilities on Lumia and Naranja Standard 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 Lumia with a short position of Naranja Standard. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lumia and Naranja Standard.
Diversification Opportunities for Lumia and Naranja Standard
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Lumia and Naranja is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Lumia and Naranja Standard Poors in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Naranja Standard Poors and Lumia 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 Lumia are associated (or correlated) with Naranja Standard. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Naranja Standard Poors has no effect on the direction of Lumia i.e., Lumia and Naranja Standard go up and down completely randomly.
Pair Corralation between Lumia and Naranja Standard
Assuming the 90 days trading horizon Lumia is expected to under-perform the Naranja Standard. In addition to that, Lumia is 6.78 times more volatile than Naranja Standard Poors. It trades about -0.33 of its total potential returns per unit of risk. Naranja Standard Poors is currently generating about 0.16 per unit of volatility. If you would invest 13,642 in Naranja Standard Poors on November 2, 2024 and sell it today you would earn a total of 377.00 from holding Naranja Standard Poors or generate 2.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Lumia vs. Naranja Standard Poors
Performance |
| Timeline |
| Lumia |
| Naranja Standard Poors |
Lumia and Naranja Standard Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lumia and Naranja Standard
The main advantage of trading using opposite Lumia and Naranja Standard positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lumia position performs unexpectedly, Naranja Standard 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 Naranja Standard will offset losses from the drop in Naranja Standard's long position.The idea behind Lumia and Naranja Standard Poors pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Naranja Standard vs. Naranja 2030 Pp | Naranja Standard vs. Naranja 2050 PP | Naranja Standard vs. Naranja Eurostoxx 50 | Naranja Standard vs. Naranja 2040 Pp |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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