Correlation Between Luxfer Holdings and Fit After
Can any of the company-specific risk be diversified away by investing in both Luxfer Holdings and Fit After 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 Fit After 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 Fit After Fifty, you can compare the effects of market volatilities on Luxfer Holdings and Fit After 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 Fit After. Check out your portfolio center. Please also check ongoing floating volatility patterns of Luxfer Holdings and Fit After.
Diversification Opportunities for Luxfer Holdings and Fit After
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Luxfer and Fit is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Luxfer Holdings PLC and Fit After Fifty in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fit After Fifty 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 Fit After. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fit After Fifty has no effect on the direction of Luxfer Holdings i.e., Luxfer Holdings and Fit After go up and down completely randomly.
Pair Corralation between Luxfer Holdings and Fit After
If you would invest 1,286 in Luxfer Holdings PLC on August 28, 2024 and sell it today you would earn a total of 164.00 from holding Luxfer Holdings PLC or generate 12.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Luxfer Holdings PLC vs. Fit After Fifty
Performance |
| Timeline |
| Luxfer Holdings PLC |
| Fit After Fifty |
Luxfer Holdings and Fit After Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Luxfer Holdings and Fit After
The main advantage of trading using opposite Luxfer Holdings and Fit After positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Luxfer Holdings position performs unexpectedly, Fit After 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 Fit After will offset losses from the drop in Fit After's long position.| Luxfer Holdings vs. Aquagold International | Luxfer Holdings vs. Morningstar Unconstrained Allocation | Luxfer Holdings vs. High Yield Municipal Fund | Luxfer Holdings vs. Thrivent High Yield |
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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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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