Correlation Between Lumen Technologies and Elisa Oyj
Can any of the company-specific risk be diversified away by investing in both Lumen Technologies and Elisa Oyj 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 Elisa Oyj into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lumen Technologies and Elisa Oyj, you can compare the effects of market volatilities on Lumen Technologies and Elisa Oyj 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 Elisa Oyj. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lumen Technologies and Elisa Oyj.
Diversification Opportunities for Lumen Technologies and Elisa Oyj
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Lumen and Elisa is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Lumen Technologies and Elisa Oyj in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elisa Oyj 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 Elisa Oyj. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elisa Oyj has no effect on the direction of Lumen Technologies i.e., Lumen Technologies and Elisa Oyj go up and down completely randomly.
Pair Corralation between Lumen Technologies and Elisa Oyj
If you would invest 700.00 in Lumen Technologies on September 2, 2024 and sell it today you would earn a total of 34.00 from holding Lumen Technologies or generate 4.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Lumen Technologies vs. Elisa Oyj
Performance |
| Timeline |
| Lumen Technologies |
| Elisa Oyj |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Lumen Technologies and Elisa Oyj Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lumen Technologies and Elisa Oyj
The main advantage of trading using opposite Lumen Technologies and Elisa Oyj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lumen Technologies position performs unexpectedly, Elisa Oyj 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 Elisa Oyj will offset losses from the drop in Elisa Oyj's long position.| Lumen Technologies vs. Verizon Communications | Lumen Technologies vs. T Mobile | Lumen Technologies vs. Comcast Corp | Lumen Technologies vs. ATT Inc |
| Elisa Oyj vs. Verizon Communications | Elisa Oyj vs. T Mobile | Elisa Oyj vs. Lumen Technologies | Elisa Oyj vs. Comcast Corp |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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