Correlation Between Luxfer Holdings and Coeur DAlene
Can any of the company-specific risk be diversified away by investing in both Luxfer Holdings and Coeur DAlene 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 Luxfer Holdings and Coeur DAlene into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Luxfer Holdings PLC and Coeur dAlene Bancorp, you can compare the effects of market volatilities on Luxfer Holdings and Coeur DAlene 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 Luxfer Holdings with a short position of Coeur DAlene. Check out your portfolio center. Please also check ongoing floating volatility patterns of Luxfer Holdings and Coeur DAlene.
Diversification Opportunities for Luxfer Holdings and Coeur DAlene
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Luxfer and Coeur is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Luxfer Holdings PLC and Coeur dAlene Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coeur dAlene Bancorp and Luxfer 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 Luxfer Holdings PLC are associated (or correlated) with Coeur DAlene. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coeur dAlene Bancorp has no effect on the direction of Luxfer Holdings i.e., Luxfer Holdings and Coeur DAlene go up and down completely randomly.
Pair Corralation between Luxfer Holdings and Coeur DAlene
Given the investment horizon of 90 days Luxfer Holdings is expected to generate 44.41 times less return on investment than Coeur DAlene. But when comparing it to its historical volatility, Luxfer Holdings PLC is 1.01 times less risky than Coeur DAlene. It trades about 0.01 of its potential returns per unit of risk. Coeur dAlene Bancorp is currently generating about 0.41 of returns per unit of risk over similar time horizon. If you would invest 1,410 in Coeur dAlene Bancorp on September 1, 2024 and sell it today you would earn a total of 265.00 from holding Coeur dAlene Bancorp or generate 18.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Luxfer Holdings PLC vs. Coeur dAlene Bancorp
Performance |
| Timeline |
| Luxfer Holdings PLC |
| Coeur dAlene Bancorp |
Luxfer Holdings and Coeur DAlene Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Luxfer Holdings and Coeur DAlene
The main advantage of trading using opposite Luxfer Holdings and Coeur DAlene positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Luxfer Holdings position performs unexpectedly, Coeur DAlene 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 Coeur DAlene will offset losses from the drop in Coeur DAlene's long position.| Luxfer Holdings vs. Graham | Luxfer Holdings vs. Enerpac Tool Group | Luxfer Holdings vs. Kadant Inc | Luxfer Holdings vs. Omega Flex |
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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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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