Correlation Between Lexinfintech Holdings and MarketAxess Holdings
Can any of the company-specific risk be diversified away by investing in both Lexinfintech Holdings and MarketAxess 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 MarketAxess 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 MarketAxess Holdings, you can compare the effects of market volatilities on Lexinfintech Holdings and MarketAxess 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 MarketAxess Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lexinfintech Holdings and MarketAxess Holdings.
Diversification Opportunities for Lexinfintech Holdings and MarketAxess Holdings
-0.92 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Lexinfintech and MarketAxess is -0.92. Overlapping area represents the amount of risk that can be diversified away by holding Lexinfintech Holdings and MarketAxess Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MarketAxess 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 MarketAxess Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MarketAxess Holdings has no effect on the direction of Lexinfintech Holdings i.e., Lexinfintech Holdings and MarketAxess Holdings go up and down completely randomly.
Pair Corralation between Lexinfintech Holdings and MarketAxess Holdings
Allowing for the 90-day total investment horizon Lexinfintech Holdings is expected to generate 3.49 times more return on investment than MarketAxess Holdings. However, Lexinfintech Holdings is 3.49 times more volatile than MarketAxess Holdings. It trades about 0.25 of its potential returns per unit of risk. MarketAxess Holdings is currently generating about -0.19 per unit of risk. If you would invest 583.00 in Lexinfintech Holdings on October 20, 2024 and sell it today you would earn a total of 96.00 from holding Lexinfintech Holdings or generate 16.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lexinfintech Holdings vs. MarketAxess Holdings
Performance |
| Timeline |
| Lexinfintech Holdings |
| MarketAxess Holdings |
Lexinfintech Holdings and MarketAxess Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lexinfintech Holdings and MarketAxess Holdings
The main advantage of trading using opposite Lexinfintech Holdings and MarketAxess Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lexinfintech Holdings position performs unexpectedly, MarketAxess 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 MarketAxess Holdings will offset losses from the drop in MarketAxess Holdings' long position.| Lexinfintech Holdings vs. 360 Finance | Lexinfintech Holdings vs. Atlanticus Holdings | Lexinfintech Holdings vs. Qudian Inc | Lexinfintech Holdings vs. Enova International |
| MarketAxess Holdings vs. Interactive Brokers Group | MarketAxess Holdings vs. Evercore Partners | MarketAxess Holdings vs. PJT Partners | MarketAxess Holdings vs. LPL Financial Holdings |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Stocks Directory Find actively traded stocks across global markets | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |