Correlation Between Luxfer Holdings and Commerce Planet
Can any of the company-specific risk be diversified away by investing in both Luxfer Holdings and Commerce Planet 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 Commerce Planet 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 Commerce Planet, you can compare the effects of market volatilities on Luxfer Holdings and Commerce Planet 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 Commerce Planet. Check out your portfolio center. Please also check ongoing floating volatility patterns of Luxfer Holdings and Commerce Planet.
Diversification Opportunities for Luxfer Holdings and Commerce Planet
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Luxfer and Commerce is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Luxfer Holdings PLC and Commerce Planet in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Commerce Planet 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 Commerce Planet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Commerce Planet has no effect on the direction of Luxfer Holdings i.e., Luxfer Holdings and Commerce Planet go up and down completely randomly.
Pair Corralation between Luxfer Holdings and Commerce Planet
If you would invest (100.00) in Commerce Planet on December 7, 2024 and sell it today you would earn a total of 100.00 from holding Commerce Planet or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Luxfer Holdings PLC vs. Commerce Planet
Performance |
| Timeline |
| Luxfer Holdings PLC |
| Commerce Planet |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Luxfer Holdings and Commerce Planet Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Luxfer Holdings and Commerce Planet
The main advantage of trading using opposite Luxfer Holdings and Commerce Planet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Luxfer Holdings position performs unexpectedly, Commerce Planet 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 Commerce Planet will offset losses from the drop in Commerce Planet's long position.| Luxfer Holdings vs. Graham | Luxfer Holdings vs. Enerpac Tool Group | Luxfer Holdings vs. Kadant Inc | Luxfer Holdings vs. Omega Flex |
| Commerce Planet vs. Pekin Life Insurance | Commerce Planet vs. HomeTrust Bancshares, | Commerce Planet vs. JBG SMITH Properties | Commerce Planet vs. Alignment Healthcare LLC |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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