Correlation Between Luxfer Holdings and Maquia Capital
Can any of the company-specific risk be diversified away by investing in both Luxfer Holdings and Maquia Capital 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 Maquia Capital 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 Maquia Capital Acquisition, you can compare the effects of market volatilities on Luxfer Holdings and Maquia Capital 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 Maquia Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Luxfer Holdings and Maquia Capital.
Diversification Opportunities for Luxfer Holdings and Maquia Capital
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Luxfer and Maquia is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Luxfer Holdings PLC and Maquia Capital Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maquia Capital Acqui 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 Maquia Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maquia Capital Acqui has no effect on the direction of Luxfer Holdings i.e., Luxfer Holdings and Maquia Capital go up and down completely randomly.
Pair Corralation between Luxfer Holdings and Maquia Capital
Given the investment horizon of 90 days Luxfer Holdings PLC is expected to generate 7.51 times more return on investment than Maquia Capital. However, Luxfer Holdings is 7.51 times more volatile than Maquia Capital Acquisition. It trades about 0.08 of its potential returns per unit of risk. Maquia Capital Acquisition is currently generating about -0.04 per unit of risk. If you would invest 809.00 in Luxfer Holdings PLC on September 14, 2024 and sell it today you would earn a total of 547.00 from holding Luxfer Holdings PLC or generate 67.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 65.06% |
| Values | Daily Returns |
Luxfer Holdings PLC vs. Maquia Capital Acquisition
Performance |
| Timeline |
| Luxfer Holdings PLC |
| Maquia Capital Acqui |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Luxfer Holdings and Maquia Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Luxfer Holdings and Maquia Capital
The main advantage of trading using opposite Luxfer Holdings and Maquia Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Luxfer Holdings position performs unexpectedly, Maquia Capital 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 Maquia Capital will offset losses from the drop in Maquia Capital's long position.| Luxfer Holdings vs. Graham | Luxfer Holdings vs. Enerpac Tool Group | Luxfer Holdings vs. Kadant Inc | Luxfer Holdings vs. Omega Flex |
| Maquia Capital vs. Axalta Coating Systems | Maquia Capital vs. Ryanair Holdings PLC | Maquia Capital vs. Stepan Company | Maquia Capital vs. Luxfer Holdings PLC |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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