Correlation Between Luxfer Holdings and Country Garden
Can any of the company-specific risk be diversified away by investing in both Luxfer Holdings and Country Garden 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 Country Garden 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 Country Garden Holdings, you can compare the effects of market volatilities on Luxfer Holdings and Country Garden 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 Country Garden. Check out your portfolio center. Please also check ongoing floating volatility patterns of Luxfer Holdings and Country Garden.
Diversification Opportunities for Luxfer Holdings and Country Garden
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Luxfer and Country is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Luxfer Holdings PLC and Country Garden Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Country Garden Holdings 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 Country Garden. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Country Garden Holdings has no effect on the direction of Luxfer Holdings i.e., Luxfer Holdings and Country Garden go up and down completely randomly.
Pair Corralation between Luxfer Holdings and Country Garden
If you would invest 1,313 in Luxfer Holdings PLC on October 20, 2024 and sell it today you would earn a total of 60.00 from holding Luxfer Holdings PLC or generate 4.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Luxfer Holdings PLC vs. Country Garden Holdings
Performance |
| Timeline |
| Luxfer Holdings PLC |
| Country Garden Holdings |
Luxfer Holdings and Country Garden Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Luxfer Holdings and Country Garden
The main advantage of trading using opposite Luxfer Holdings and Country Garden positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Luxfer Holdings position performs unexpectedly, Country Garden 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 Country Garden will offset losses from the drop in Country Garden's long position.| Luxfer Holdings vs. Graham | Luxfer Holdings vs. Enerpac Tool Group | Luxfer Holdings vs. Kadant Inc | Luxfer Holdings vs. Omega Flex |
| Country Garden vs. flyExclusive, | Country Garden vs. Snap On | Country Garden vs. World Houseware Limited | Country Garden vs. Beauty Health Co |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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