Correlation Between Lexinfintech Holdings and Atlanticus Holdings
Can any of the company-specific risk be diversified away by investing in both Lexinfintech Holdings and Atlanticus Holdings 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 Atlanticus Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lexinfintech Holdings and Atlanticus Holdings, you can compare the effects of market volatilities on Lexinfintech Holdings and Atlanticus Holdings 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 Atlanticus Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lexinfintech Holdings and Atlanticus Holdings.
Diversification Opportunities for Lexinfintech Holdings and Atlanticus Holdings
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Lexinfintech and Atlanticus is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Lexinfintech Holdings and Atlanticus Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atlanticus Holdings 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 Atlanticus Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atlanticus Holdings has no effect on the direction of Lexinfintech Holdings i.e., Lexinfintech Holdings and Atlanticus Holdings go up and down completely randomly.
Pair Corralation between Lexinfintech Holdings and Atlanticus Holdings
Allowing for the 90-day total investment horizon Lexinfintech Holdings is expected to generate 8.38 times less return on investment than Atlanticus Holdings. In addition to that, Lexinfintech Holdings is 1.76 times more volatile than Atlanticus Holdings. It trades about 0.05 of its total potential returns per unit of risk. Atlanticus Holdings is currently generating about 0.72 per unit of volatility. If you would invest 3,719 in Atlanticus Holdings on August 28, 2024 and sell it today you would earn a total of 1,982 from holding Atlanticus Holdings or generate 53.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lexinfintech Holdings vs. Atlanticus Holdings
Performance |
| Timeline |
| Lexinfintech Holdings |
| Atlanticus Holdings |
Lexinfintech Holdings and Atlanticus Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lexinfintech Holdings and Atlanticus Holdings
The main advantage of trading using opposite Lexinfintech Holdings and Atlanticus Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lexinfintech Holdings position performs unexpectedly, Atlanticus Holdings 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 Atlanticus Holdings will offset losses from the drop in Atlanticus Holdings' long position.| Lexinfintech Holdings vs. SLM Corp | Lexinfintech Holdings vs. Orix Corp Ads | Lexinfintech Holdings vs. FirstCash | Lexinfintech Holdings vs. Medallion Financial Corp |
| Atlanticus Holdings vs. 360 Finance | Atlanticus Holdings vs. Lexinfintech Holdings | Atlanticus Holdings vs. Qudian Inc | Atlanticus Holdings vs. Enova International |
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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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