Correlation Between Lexinfintech Holdings and Golden Star
Can any of the company-specific risk be diversified away by investing in both Lexinfintech Holdings and Golden Star 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 Golden Star into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lexinfintech Holdings and Golden Star Acquisition, you can compare the effects of market volatilities on Lexinfintech Holdings and Golden Star 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 Golden Star. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lexinfintech Holdings and Golden Star.
Diversification Opportunities for Lexinfintech Holdings and Golden Star
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lexinfintech and Golden is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Lexinfintech Holdings and Golden Star Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Golden Star Acquisition 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 Golden Star. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Golden Star Acquisition has no effect on the direction of Lexinfintech Holdings i.e., Lexinfintech Holdings and Golden Star go up and down completely randomly.
Pair Corralation between Lexinfintech Holdings and Golden Star
Allowing for the 90-day total investment horizon Lexinfintech Holdings is expected to generate 2.02 times more return on investment than Golden Star. However, Lexinfintech Holdings is 2.02 times more volatile than Golden Star Acquisition. It trades about 0.36 of its potential returns per unit of risk. Golden Star Acquisition is currently generating about -0.56 per unit of risk. If you would invest 360.00 in Lexinfintech Holdings on September 12, 2024 and sell it today you would earn a total of 229.00 from holding Lexinfintech Holdings or generate 63.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 31.82% |
| Values | Daily Returns |
Lexinfintech Holdings vs. Golden Star Acquisition
Performance |
| Timeline |
| Lexinfintech Holdings |
| Golden Star Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Lexinfintech Holdings and Golden Star Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lexinfintech Holdings and Golden Star
The main advantage of trading using opposite Lexinfintech Holdings and Golden Star positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lexinfintech Holdings position performs unexpectedly, Golden Star 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 Golden Star will offset losses from the drop in Golden Star's long position.| Lexinfintech Holdings vs. Victory Integrity Smallmid Cap | Lexinfintech Holdings vs. Hilton Worldwide Holdings | Lexinfintech Holdings vs. NVIDIA | Lexinfintech Holdings vs. JPMorgan Chase Co |
| Golden Star vs. HUMANA INC | Golden Star vs. Barloworld Ltd ADR | Golden Star vs. Morningstar Unconstrained Allocation | Golden Star vs. Thrivent High Yield |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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