Correlation Between Lexinfintech Holdings and AFC Gamma
Can any of the company-specific risk be diversified away by investing in both Lexinfintech Holdings and AFC Gamma 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 Lexinfintech Holdings and AFC Gamma into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lexinfintech Holdings and AFC Gamma, you can compare the effects of market volatilities on Lexinfintech Holdings and AFC Gamma 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 Lexinfintech Holdings with a short position of AFC Gamma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lexinfintech Holdings and AFC Gamma.
Diversification Opportunities for Lexinfintech Holdings and AFC Gamma
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lexinfintech and AFC is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Lexinfintech Holdings and AFC Gamma in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AFC Gamma and Lexinfintech Holdings 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 Lexinfintech Holdings are associated (or correlated) with AFC Gamma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AFC Gamma has no effect on the direction of Lexinfintech Holdings i.e., Lexinfintech Holdings and AFC Gamma go up and down completely randomly.
Pair Corralation between Lexinfintech Holdings and AFC Gamma
Allowing for the 90-day total investment horizon Lexinfintech Holdings is expected to generate 2.19 times more return on investment than AFC Gamma. However, Lexinfintech Holdings is 2.19 times more volatile than AFC Gamma. It trades about 0.06 of its potential returns per unit of risk. AFC Gamma is currently generating about 0.03 per unit of risk. If you would invest 161.00 in Lexinfintech Holdings on August 24, 2024 and sell it today you would earn a total of 178.00 from holding Lexinfintech Holdings or generate 110.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lexinfintech Holdings vs. AFC Gamma
Performance |
| Timeline |
| Lexinfintech Holdings |
| AFC Gamma |
Lexinfintech Holdings and AFC Gamma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lexinfintech Holdings and AFC Gamma
The main advantage of trading using opposite Lexinfintech Holdings and AFC Gamma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lexinfintech Holdings position performs unexpectedly, AFC Gamma 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 AFC Gamma will offset losses from the drop in AFC Gamma's long position.| Lexinfintech Holdings vs. Visa Class A | Lexinfintech Holdings vs. Mastercard | Lexinfintech Holdings vs. SoFi Technologies | Lexinfintech Holdings vs. Coca Cola Consolidated |
| AFC Gamma vs. Newlake Capital Partners | AFC Gamma vs. SBA Communications Corp | AFC Gamma vs. Gladstone Land | AFC Gamma vs. Lamar Advertising |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |