Correlation Between Lexinfintech Holdings and Yotta Acquisition
Can any of the company-specific risk be diversified away by investing in both Lexinfintech Holdings and Yotta Acquisition 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 Yotta Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lexinfintech Holdings and Yotta Acquisition, you can compare the effects of market volatilities on Lexinfintech Holdings and Yotta Acquisition 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 Yotta Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lexinfintech Holdings and Yotta Acquisition.
Diversification Opportunities for Lexinfintech Holdings and Yotta Acquisition
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Lexinfintech and Yotta is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Lexinfintech Holdings and Yotta Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yotta 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 Yotta Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yotta Acquisition has no effect on the direction of Lexinfintech Holdings i.e., Lexinfintech Holdings and Yotta Acquisition go up and down completely randomly.
Pair Corralation between Lexinfintech Holdings and Yotta Acquisition
Allowing for the 90-day total investment horizon Lexinfintech Holdings is expected to generate 38.06 times less return on investment than Yotta Acquisition. But when comparing it to its historical volatility, Lexinfintech Holdings is 35.9 times less risky than Yotta Acquisition. It trades about 0.24 of its potential returns per unit of risk. Yotta Acquisition is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 0.00 in Yotta Acquisition on August 29, 2024 and sell it today you would earn a total of 9.11 from holding Yotta Acquisition or generate 9.223372036854776E16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 43.75% |
| Values | Daily Returns |
Lexinfintech Holdings vs. Yotta Acquisition
Performance |
| Timeline |
| Lexinfintech Holdings |
| Yotta Acquisition |
Lexinfintech Holdings and Yotta Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lexinfintech Holdings and Yotta Acquisition
The main advantage of trading using opposite Lexinfintech Holdings and Yotta Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lexinfintech Holdings position performs unexpectedly, Yotta Acquisition 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 Yotta Acquisition will offset losses from the drop in Yotta Acquisition's long position.| Lexinfintech Holdings vs. 360 Finance | Lexinfintech Holdings vs. Atlanticus Holdings | Lexinfintech Holdings vs. Qudian Inc | Lexinfintech Holdings vs. Enova International |
| Yotta Acquisition vs. Yotta Acquisition | Yotta Acquisition vs. Yotta Acquisition | Yotta Acquisition vs. Welsbach Technology Metals |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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