Correlation Between Luxfer Holdings and EvoAir Holdings
Can any of the company-specific risk be diversified away by investing in both Luxfer Holdings and EvoAir Holdings 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 EvoAir Holdings 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 EvoAir Holdings, you can compare the effects of market volatilities on Luxfer Holdings and EvoAir Holdings 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 EvoAir Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Luxfer Holdings and EvoAir Holdings.
Diversification Opportunities for Luxfer Holdings and EvoAir Holdings
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Luxfer and EvoAir is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Luxfer Holdings PLC and EvoAir Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EvoAir 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 EvoAir Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EvoAir Holdings has no effect on the direction of Luxfer Holdings i.e., Luxfer Holdings and EvoAir Holdings go up and down completely randomly.
Pair Corralation between Luxfer Holdings and EvoAir Holdings
Given the investment horizon of 90 days Luxfer Holdings PLC is expected to generate 13.35 times more return on investment than EvoAir Holdings. However, Luxfer Holdings is 13.35 times more volatile than EvoAir Holdings. It trades about 0.02 of its potential returns per unit of risk. EvoAir Holdings is currently generating about 0.04 per unit of risk. If you would invest 1,282 in Luxfer Holdings PLC on September 4, 2024 and sell it today you would earn a total of 198.00 from holding Luxfer Holdings PLC or generate 15.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Luxfer Holdings PLC vs. EvoAir Holdings
Performance |
| Timeline |
| Luxfer Holdings PLC |
| EvoAir Holdings |
Luxfer Holdings and EvoAir Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Luxfer Holdings and EvoAir Holdings
The main advantage of trading using opposite Luxfer Holdings and EvoAir Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Luxfer Holdings position performs unexpectedly, EvoAir Holdings 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 EvoAir Holdings will offset losses from the drop in EvoAir Holdings' long position.| Luxfer Holdings vs. Shapeways Holdings, Common | Luxfer Holdings vs. JE Cleantech Holdings | Luxfer Holdings vs. Laser Photonics | Luxfer Holdings vs. Siemens AG Class |
| EvoAir Holdings vs. Western Acquisition Ventures | EvoAir Holdings vs. Paysafe | EvoAir Holdings vs. ServiceNow | EvoAir Holdings vs. Asure Software |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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