Correlation Between Luxfer Holdings and Lord Global
Can any of the company-specific risk be diversified away by investing in both Luxfer Holdings and Lord Global 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 Lord Global 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 Lord Global Corp, you can compare the effects of market volatilities on Luxfer Holdings and Lord Global 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 Lord Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Luxfer Holdings and Lord Global.
Diversification Opportunities for Luxfer Holdings and Lord Global
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Luxfer and Lord is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Luxfer Holdings PLC and Lord Global Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lord Global Corp 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 Lord Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lord Global Corp has no effect on the direction of Luxfer Holdings i.e., Luxfer Holdings and Lord Global go up and down completely randomly.
Pair Corralation between Luxfer Holdings and Lord Global
If you would invest 0.02 in Lord Global Corp on September 14, 2024 and sell it today you would earn a total of 0.00 from holding Lord Global Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Luxfer Holdings PLC vs. Lord Global Corp
Performance |
| Timeline |
| Luxfer Holdings PLC |
| Lord Global Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Luxfer Holdings and Lord Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Luxfer Holdings and Lord Global
The main advantage of trading using opposite Luxfer Holdings and Lord Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Luxfer Holdings position performs unexpectedly, Lord Global 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 Lord Global will offset losses from the drop in Lord Global's long position.| Luxfer Holdings vs. Graham | Luxfer Holdings vs. Enerpac Tool Group | Luxfer Holdings vs. Kadant Inc | Luxfer Holdings vs. Omega Flex |
| Lord Global vs. Luxfer Holdings PLC | Lord Global vs. Codexis | Lord Global vs. Ecovyst | Lord Global vs. NL Industries |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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