Correlation Between Lumen Technologies and Global
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By analyzing existing cross correlation between Lumen Technologies and Global Payments 415, you can compare the effects of market volatilities on Lumen Technologies and Global 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 Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lumen Technologies and Global.
Diversification Opportunities for Lumen Technologies and Global
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lumen and Global is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Lumen Technologies and Global Payments 415 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Payments 415 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 Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Payments 415 has no effect on the direction of Lumen Technologies i.e., Lumen Technologies and Global go up and down completely randomly.
Pair Corralation between Lumen Technologies and Global
Given the investment horizon of 90 days Lumen Technologies is expected to generate 2.35 times more return on investment than Global. However, Lumen Technologies is 2.35 times more volatile than Global Payments 415. It trades about 0.14 of its potential returns per unit of risk. Global Payments 415 is currently generating about -0.19 per unit of risk. If you would invest 639.00 in Lumen Technologies on September 1, 2024 and sell it today you would earn a total of 95.00 from holding Lumen Technologies or generate 14.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 85.71% |
| Values | Daily Returns |
Lumen Technologies vs. Global Payments 415
Performance |
| Timeline |
| Lumen Technologies |
| Global Payments 415 |
Lumen Technologies and Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lumen Technologies and Global
The main advantage of trading using opposite Lumen Technologies and Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lumen Technologies position performs unexpectedly, Global 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 Global will offset losses from the drop in Global's long position.| Lumen Technologies vs. Verizon Communications | Lumen Technologies vs. T Mobile | Lumen Technologies vs. Comcast Corp | Lumen Technologies vs. ATT Inc |
| Global vs. Shake Shack | Global vs. Dennys Corp | Global vs. Fluent Inc | Global vs. Software Acquisition Group |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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