Correlation Between Luxfer Holdings and I Mab
Can any of the company-specific risk be diversified away by investing in both Luxfer Holdings and I Mab 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 I Mab 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 I Mab, you can compare the effects of market volatilities on Luxfer Holdings and I Mab 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 I Mab. Check out your portfolio center. Please also check ongoing floating volatility patterns of Luxfer Holdings and I Mab.
Diversification Opportunities for Luxfer Holdings and I Mab
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Luxfer and IMAB is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Luxfer Holdings PLC and I Mab in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on I Mab 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 I Mab. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of I Mab has no effect on the direction of Luxfer Holdings i.e., Luxfer Holdings and I Mab go up and down completely randomly.
Pair Corralation between Luxfer Holdings and I Mab
Given the investment horizon of 90 days Luxfer Holdings PLC is expected to generate 0.44 times more return on investment than I Mab. However, Luxfer Holdings PLC is 2.25 times less risky than I Mab. It trades about 0.22 of its potential returns per unit of risk. I Mab is currently generating about -0.05 per unit of risk. If you would invest 1,306 in Luxfer Holdings PLC on November 5, 2024 and sell it today you would earn a total of 109.00 from holding Luxfer Holdings PLC or generate 8.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Luxfer Holdings PLC vs. I Mab
Performance |
| Timeline |
| Luxfer Holdings PLC |
| I Mab |
Luxfer Holdings and I Mab Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Luxfer Holdings and I Mab
The main advantage of trading using opposite Luxfer Holdings and I Mab positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Luxfer Holdings position performs unexpectedly, I Mab 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 I Mab will offset losses from the drop in I Mab's long position.| Luxfer Holdings vs. Graham | Luxfer Holdings vs. Enerpac Tool Group | Luxfer Holdings vs. Kadant Inc | Luxfer Holdings vs. Omega Flex |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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