Correlation Between Lubelski Wegiel and E Xim
Can any of the company-specific risk be diversified away by investing in both Lubelski Wegiel and E Xim 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 Lubelski Wegiel and E Xim into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lubelski Wegiel Bogdanka and E Xim IT, you can compare the effects of market volatilities on Lubelski Wegiel and E Xim 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 Lubelski Wegiel with a short position of E Xim. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lubelski Wegiel and E Xim.
Diversification Opportunities for Lubelski Wegiel and E Xim
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lubelski and EXM is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Lubelski Wegiel Bogdanka and E Xim IT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on E Xim IT and Lubelski Wegiel 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 Lubelski Wegiel Bogdanka are associated (or correlated) with E Xim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of E Xim IT has no effect on the direction of Lubelski Wegiel i.e., Lubelski Wegiel and E Xim go up and down completely randomly.
Pair Corralation between Lubelski Wegiel and E Xim
Assuming the 90 days trading horizon Lubelski Wegiel is expected to generate 4.15 times less return on investment than E Xim. But when comparing it to its historical volatility, Lubelski Wegiel Bogdanka is 1.5 times less risky than E Xim. It trades about 0.14 of its potential returns per unit of risk. E Xim IT is currently generating about 0.39 of returns per unit of risk over similar time horizon. If you would invest 14,500 in E Xim IT on September 5, 2024 and sell it today you would earn a total of 2,500 from holding E Xim IT or generate 17.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 54.55% |
| Values | Daily Returns |
Lubelski Wegiel Bogdanka vs. E Xim IT
Performance |
| Timeline |
| Lubelski Wegiel Bogdanka |
| E Xim IT |
Lubelski Wegiel and E Xim Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lubelski Wegiel and E Xim
The main advantage of trading using opposite Lubelski Wegiel and E Xim positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lubelski Wegiel position performs unexpectedly, E Xim 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 E Xim will offset losses from the drop in E Xim's long position.| Lubelski Wegiel vs. Clean Carbon Energy | Lubelski Wegiel vs. Vercom SA | Lubelski Wegiel vs. CFI Holding SA | Lubelski Wegiel vs. Gobarto SA |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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