Correlation Between Lumia and Gurtin National
Can any of the company-specific risk be diversified away by investing in both Lumia and Gurtin National 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 Gurtin National into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lumia and Gurtin National Municipal, you can compare the effects of market volatilities on Lumia and Gurtin National 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 Gurtin National. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lumia and Gurtin National.
Diversification Opportunities for Lumia and Gurtin National
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Lumia and Gurtin is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Lumia and Gurtin National Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gurtin National Municipal 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 Gurtin National. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gurtin National Municipal has no effect on the direction of Lumia i.e., Lumia and Gurtin National go up and down completely randomly.
Pair Corralation between Lumia and Gurtin National
Assuming the 90 days trading horizon Lumia is expected to generate 1065.86 times more return on investment than Gurtin National. However, Lumia is 1065.86 times more volatile than Gurtin National Municipal. It trades about 0.2 of its potential returns per unit of risk. Gurtin National Municipal is currently generating about -0.46 per unit of risk. If you would invest 0.00 in Lumia on October 11, 2024 and sell it today you would earn a total of 117.00 from holding Lumia or generate 9.223372036854776E16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Lumia vs. Gurtin National Municipal
Performance |
| Timeline |
| Lumia |
| Gurtin National Municipal |
Lumia and Gurtin National Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lumia and Gurtin National
The main advantage of trading using opposite Lumia and Gurtin National positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lumia position performs unexpectedly, Gurtin National 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 Gurtin National will offset losses from the drop in Gurtin National's long position.The idea behind Lumia and Gurtin National Municipal 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.| Gurtin National vs. Small Pany Growth | Gurtin National vs. Vy Franklin Income | Gurtin National vs. Rbb Fund | Gurtin National vs. Tax Managed Large Cap |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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