Correlation Between Luxfer Holdings and Intevac
Can any of the company-specific risk be diversified away by investing in both Luxfer Holdings and Intevac 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 Intevac 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 Intevac, you can compare the effects of market volatilities on Luxfer Holdings and Intevac 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 Intevac. Check out your portfolio center. Please also check ongoing floating volatility patterns of Luxfer Holdings and Intevac.
Diversification Opportunities for Luxfer Holdings and Intevac
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Luxfer and Intevac is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Luxfer Holdings PLC and Intevac in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intevac 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 Intevac. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intevac has no effect on the direction of Luxfer Holdings i.e., Luxfer Holdings and Intevac go up and down completely randomly.
Pair Corralation between Luxfer Holdings and Intevac
Given the investment horizon of 90 days Luxfer Holdings PLC is expected to generate 0.36 times more return on investment than Intevac. However, Luxfer Holdings PLC is 2.78 times less risky than Intevac. It trades about 0.01 of its potential returns per unit of risk. Intevac is currently generating about -0.12 per unit of risk. If you would invest 1,436 in Luxfer Holdings PLC on September 1, 2024 and sell it today you would earn a total of 0.00 from holding Luxfer Holdings PLC or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Luxfer Holdings PLC vs. Intevac
Performance |
| Timeline |
| Luxfer Holdings PLC |
| Intevac |
Luxfer Holdings and Intevac Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Luxfer Holdings and Intevac
The main advantage of trading using opposite Luxfer Holdings and Intevac positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Luxfer Holdings position performs unexpectedly, Intevac 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 Intevac will offset losses from the drop in Intevac's long position.| Luxfer Holdings vs. Graham | Luxfer Holdings vs. Enerpac Tool Group | Luxfer Holdings vs. Kadant Inc | Luxfer Holdings vs. Omega Flex |
| Intevac vs. Innovative Solutions and | Intevac vs. Heidrick Struggles International | Intevac vs. ICF International | Intevac vs. PDF Solutions |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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