Correlation Between Luxfer Holdings and Argosy Property
Can any of the company-specific risk be diversified away by investing in both Luxfer Holdings and Argosy Property 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 Argosy Property 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 Argosy Property Limited, you can compare the effects of market volatilities on Luxfer Holdings and Argosy Property 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 Argosy Property. Check out your portfolio center. Please also check ongoing floating volatility patterns of Luxfer Holdings and Argosy Property.
Diversification Opportunities for Luxfer Holdings and Argosy Property
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Luxfer and Argosy is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Luxfer Holdings PLC and Argosy Property Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Argosy Property 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 Argosy Property. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Argosy Property has no effect on the direction of Luxfer Holdings i.e., Luxfer Holdings and Argosy Property go up and down completely randomly.
Pair Corralation between Luxfer Holdings and Argosy Property
Given the investment horizon of 90 days Luxfer Holdings PLC is expected to generate 7.62 times more return on investment than Argosy Property. However, Luxfer Holdings is 7.62 times more volatile than Argosy Property Limited. It trades about 0.08 of its potential returns per unit of risk. Argosy Property Limited is currently generating about 0.15 per unit of risk. If you would invest 871.00 in Luxfer Holdings PLC on September 14, 2024 and sell it today you would earn a total of 485.00 from holding Luxfer Holdings PLC or generate 55.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Luxfer Holdings PLC vs. Argosy Property Limited
Performance |
| Timeline |
| Luxfer Holdings PLC |
| Argosy Property |
Luxfer Holdings and Argosy Property Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Luxfer Holdings and Argosy Property
The main advantage of trading using opposite Luxfer Holdings and Argosy Property positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Luxfer Holdings position performs unexpectedly, Argosy Property 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 Argosy Property will offset losses from the drop in Argosy Property's long position.| Luxfer Holdings vs. Graham | Luxfer Holdings vs. Enerpac Tool Group | Luxfer Holdings vs. Kadant Inc | Luxfer Holdings vs. Omega Flex |
| Argosy Property vs. Avient Corp | Argosy Property vs. Hertz Global Holdings | Argosy Property vs. Luxfer Holdings PLC | Argosy Property vs. Avis Budget Group |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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