Correlation Between Lexinfintech Holdings and MDB Capital
Can any of the company-specific risk be diversified away by investing in both Lexinfintech Holdings and MDB Capital 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 MDB Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lexinfintech Holdings and MDB Capital Holdings,, you can compare the effects of market volatilities on Lexinfintech Holdings and MDB Capital 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 MDB Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lexinfintech Holdings and MDB Capital.
Diversification Opportunities for Lexinfintech Holdings and MDB Capital
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lexinfintech and MDB is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Lexinfintech Holdings and MDB Capital Holdings, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MDB Capital 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 MDB Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MDB Capital Holdings, has no effect on the direction of Lexinfintech Holdings i.e., Lexinfintech Holdings and MDB Capital go up and down completely randomly.
Pair Corralation between Lexinfintech Holdings and MDB Capital
Allowing for the 90-day total investment horizon Lexinfintech Holdings is expected to generate 0.89 times more return on investment than MDB Capital. However, Lexinfintech Holdings is 1.12 times less risky than MDB Capital. It trades about 0.12 of its potential returns per unit of risk. MDB Capital Holdings, is currently generating about 0.0 per unit of risk. If you would invest 166.00 in Lexinfintech Holdings on September 3, 2024 and sell it today you would earn a total of 341.00 from holding Lexinfintech Holdings or generate 205.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lexinfintech Holdings vs. MDB Capital Holdings,
Performance |
| Timeline |
| Lexinfintech Holdings |
| MDB Capital Holdings, |
Lexinfintech Holdings and MDB Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lexinfintech Holdings and MDB Capital
The main advantage of trading using opposite Lexinfintech Holdings and MDB Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lexinfintech Holdings position performs unexpectedly, MDB Capital 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 MDB Capital will offset losses from the drop in MDB Capital's long position.| Lexinfintech Holdings vs. Highway Holdings Limited | Lexinfintech Holdings vs. QCR Holdings | Lexinfintech Holdings vs. Partner Communications | Lexinfintech Holdings vs. Acumen Pharmaceuticals |
| MDB Capital vs. Catalyst Pharmaceuticals | MDB Capital vs. Ardelyx | MDB Capital vs. Mesa Air Group | MDB Capital vs. Sellas Life Sciences |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Commodity Directory Find actively traded commodities issued by global exchanges |