Correlation Between Lexinfintech Holdings and Everest Consolidator
Can any of the company-specific risk be diversified away by investing in both Lexinfintech Holdings and Everest Consolidator 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 Everest Consolidator into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lexinfintech Holdings and Everest Consolidator Acquisition, you can compare the effects of market volatilities on Lexinfintech Holdings and Everest Consolidator 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 Everest Consolidator. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lexinfintech Holdings and Everest Consolidator.
Diversification Opportunities for Lexinfintech Holdings and Everest Consolidator
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lexinfintech and Everest is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Lexinfintech Holdings and Everest Consolidator Acquisiti in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Everest Consolidator 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 Everest Consolidator. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Everest Consolidator has no effect on the direction of Lexinfintech Holdings i.e., Lexinfintech Holdings and Everest Consolidator go up and down completely randomly.
Pair Corralation between Lexinfintech Holdings and Everest Consolidator
Allowing for the 90-day total investment horizon Lexinfintech Holdings is expected to generate 3.99 times more return on investment than Everest Consolidator. However, Lexinfintech Holdings is 3.99 times more volatile than Everest Consolidator Acquisition. It trades about 0.27 of its potential returns per unit of risk. Everest Consolidator Acquisition is currently generating about 0.0 per unit of risk. If you would invest 167.00 in Lexinfintech Holdings on November 2, 2024 and sell it today you would earn a total of 618.00 from holding Lexinfintech Holdings or generate 370.06% 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. Everest Consolidator Acquisiti
Performance |
| Timeline |
| Lexinfintech Holdings |
| Everest Consolidator |
Lexinfintech Holdings and Everest Consolidator Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lexinfintech Holdings and Everest Consolidator
The main advantage of trading using opposite Lexinfintech Holdings and Everest Consolidator positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lexinfintech Holdings position performs unexpectedly, Everest Consolidator 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 Everest Consolidator will offset losses from the drop in Everest Consolidator's long position.| Lexinfintech Holdings vs. 360 Finance | Lexinfintech Holdings vs. Atlanticus Holdings | Lexinfintech Holdings vs. Qudian Inc | Lexinfintech Holdings vs. Enova International |
| Everest Consolidator vs. Blue Owl Capital | Everest Consolidator vs. TPG Inc | Everest Consolidator vs. Patria Investments | Everest Consolidator vs. Cion Investment Corp |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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