Correlation Between Lexinfintech Holdings and SK Growth
Can any of the company-specific risk be diversified away by investing in both Lexinfintech Holdings and SK Growth 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 SK Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lexinfintech Holdings and SK Growth Opportunities, you can compare the effects of market volatilities on Lexinfintech Holdings and SK Growth 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 SK Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lexinfintech Holdings and SK Growth.
Diversification Opportunities for Lexinfintech Holdings and SK Growth
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Lexinfintech and SKGR is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Lexinfintech Holdings and SK Growth Opportunities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SK Growth Opportunities 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 SK Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SK Growth Opportunities has no effect on the direction of Lexinfintech Holdings i.e., Lexinfintech Holdings and SK Growth go up and down completely randomly.
Pair Corralation between Lexinfintech Holdings and SK Growth
If you would invest 604.00 in Lexinfintech Holdings on October 25, 2024 and sell it today you would earn a total of 64.00 from holding Lexinfintech Holdings or generate 10.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lexinfintech Holdings vs. SK Growth Opportunities
Performance |
| Timeline |
| Lexinfintech Holdings |
| SK Growth Opportunities |
Lexinfintech Holdings and SK Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lexinfintech Holdings and SK Growth
The main advantage of trading using opposite Lexinfintech Holdings and SK Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lexinfintech Holdings position performs unexpectedly, SK Growth 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 SK Growth will offset losses from the drop in SK Growth's long position.| Lexinfintech Holdings vs. 360 Finance | Lexinfintech Holdings vs. Atlanticus Holdings | Lexinfintech Holdings vs. Qudian Inc | Lexinfintech Holdings vs. Enova International |
| SK Growth vs. Four Leaf Acquisition | SK Growth vs. WinVest Acquisition Corp | SK Growth vs. Alpha One | SK Growth vs. Manaris 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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