Correlation Between Lumia and 25160PAH0
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By analyzing existing cross correlation between Lumia and DB 2552 07 JAN 28, you can compare the effects of market volatilities on Lumia and 25160PAH0 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 25160PAH0. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lumia and 25160PAH0.
Diversification Opportunities for Lumia and 25160PAH0
Very good diversification
The 3 months correlation between Lumia and 25160PAH0 is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Lumia and DB 2552 07 JAN 28 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DB 2552 07 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 25160PAH0. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DB 2552 07 has no effect on the direction of Lumia i.e., Lumia and 25160PAH0 go up and down completely randomly.
Pair Corralation between Lumia and 25160PAH0
Assuming the 90 days trading horizon Lumia is expected to under-perform the 25160PAH0. In addition to that, Lumia is 8.65 times more volatile than DB 2552 07 JAN 28. It trades about -0.33 of its total potential returns per unit of risk. DB 2552 07 JAN 28 is currently generating about -0.26 per unit of volatility. If you would invest 9,526 in DB 2552 07 JAN 28 on October 14, 2024 and sell it today you would lose (321.00) from holding DB 2552 07 JAN 28 or give up 3.37% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 80.95% |
| Values | Daily Returns |
Lumia vs. DB 2552 07 JAN 28
Performance |
| Timeline |
| Lumia |
| DB 2552 07 |
Lumia and 25160PAH0 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lumia and 25160PAH0
The main advantage of trading using opposite Lumia and 25160PAH0 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lumia position performs unexpectedly, 25160PAH0 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 25160PAH0 will offset losses from the drop in 25160PAH0's long position.The idea behind Lumia and DB 2552 07 JAN 28 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.| 25160PAH0 vs. Black Spade Acquisition | 25160PAH0 vs. Hudson Acquisition I | 25160PAH0 vs. MGIC Investment Corp | 25160PAH0 vs. Cedar Realty Trust |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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