Correlation Between Luxfer Holdings and Mountain Crest
Can any of the company-specific risk be diversified away by investing in both Luxfer Holdings and Mountain Crest 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 Mountain Crest 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 Mountain Crest Acquisition, you can compare the effects of market volatilities on Luxfer Holdings and Mountain Crest 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 Mountain Crest. Check out your portfolio center. Please also check ongoing floating volatility patterns of Luxfer Holdings and Mountain Crest.
Diversification Opportunities for Luxfer Holdings and Mountain Crest
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Luxfer and Mountain is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Luxfer Holdings PLC and Mountain Crest Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mountain Crest 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 Mountain Crest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mountain Crest Acqui has no effect on the direction of Luxfer Holdings i.e., Luxfer Holdings and Mountain Crest go up and down completely randomly.
Pair Corralation between Luxfer Holdings and Mountain Crest
If you would invest 1,236 in Luxfer Holdings PLC on August 26, 2024 and sell it today you would earn a total of 186.00 from holding Luxfer Holdings PLC or generate 15.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 0.0% |
| Values | Daily Returns |
Luxfer Holdings PLC vs. Mountain Crest Acquisition
Performance |
| Timeline |
| Luxfer Holdings PLC |
| Mountain Crest Acqui |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Luxfer Holdings and Mountain Crest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Luxfer Holdings and Mountain Crest
The main advantage of trading using opposite Luxfer Holdings and Mountain Crest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Luxfer Holdings position performs unexpectedly, Mountain Crest 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 Mountain Crest will offset losses from the drop in Mountain Crest's long position.| Luxfer Holdings vs. Graham | Luxfer Holdings vs. Enerpac Tool Group | Luxfer Holdings vs. Kadant Inc | Luxfer Holdings vs. Omega Flex |
| Mountain Crest vs. Hawkins | Mountain Crest vs. Luxfer Holdings PLC | Mountain Crest vs. Axalta Coating Systems | Mountain Crest vs. Mativ Holdings |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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