Correlation Between Lumen Technologies and Anterix
Can any of the company-specific risk be diversified away by investing in both Lumen Technologies and Anterix 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 Lumen Technologies and Anterix into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lumen Technologies and Anterix, you can compare the effects of market volatilities on Lumen Technologies and Anterix 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 Lumen Technologies with a short position of Anterix. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lumen Technologies and Anterix.
Diversification Opportunities for Lumen Technologies and Anterix
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Lumen and Anterix is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Lumen Technologies and Anterix in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anterix and Lumen Technologies 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 Lumen Technologies are associated (or correlated) with Anterix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anterix has no effect on the direction of Lumen Technologies i.e., Lumen Technologies and Anterix go up and down completely randomly.
Pair Corralation between Lumen Technologies and Anterix
Given the investment horizon of 90 days Lumen Technologies is expected to under-perform the Anterix. In addition to that, Lumen Technologies is 1.43 times more volatile than Anterix. It trades about -0.09 of its total potential returns per unit of risk. Anterix is currently generating about -0.05 per unit of volatility. If you would invest 2,974 in Anterix on November 9, 2024 and sell it today you would lose (114.00) from holding Anterix or give up 3.83% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lumen Technologies vs. Anterix
Performance |
| Timeline |
| Lumen Technologies |
| Anterix |
Lumen Technologies and Anterix Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lumen Technologies and Anterix
The main advantage of trading using opposite Lumen Technologies and Anterix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lumen Technologies position performs unexpectedly, Anterix 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 Anterix will offset losses from the drop in Anterix's long position.| Lumen Technologies vs. Verizon Communications | Lumen Technologies vs. T Mobile | Lumen Technologies vs. Comcast Corp | Lumen Technologies vs. ATT Inc |
| Anterix vs. Shenandoah Telecommunications Co | Anterix vs. Liberty Broadband Corp | Anterix vs. Ooma Inc | Anterix vs. IDT Corporation |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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