Correlation Between Lumia and Madvertise
Can any of the company-specific risk be diversified away by investing in both Lumia and Madvertise 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 Lumia and Madvertise into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lumia and Madvertise SA, you can compare the effects of market volatilities on Lumia and Madvertise 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 Madvertise. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lumia and Madvertise.
Diversification Opportunities for Lumia and Madvertise
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Lumia and Madvertise is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Lumia and Madvertise SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Madvertise SA 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 Madvertise. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Madvertise SA has no effect on the direction of Lumia i.e., Lumia and Madvertise go up and down completely randomly.
Pair Corralation between Lumia and Madvertise
If you would invest 0.00 in Lumia on November 2, 2024 and sell it today you would earn a total of 91.00 from holding Lumia or generate 9.223372036854776E16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.19% |
| Values | Daily Returns |
Lumia vs. Madvertise SA
Performance |
| Timeline |
| Lumia |
| Madvertise SA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Lumia and Madvertise Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lumia and Madvertise
The main advantage of trading using opposite Lumia and Madvertise positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lumia position performs unexpectedly, Madvertise 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 Madvertise will offset losses from the drop in Madvertise's long position.The idea behind Lumia and Madvertise SA 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.| Madvertise vs. Gaztransport Technigaz SAS | Madvertise vs. FNP Technologies SA | Madvertise vs. Fiducial Office Solutions | Madvertise vs. Hotel Majestic Cannes |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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