Correlation Between Luxfer Holdings and Pear Therapeutics
Can any of the company-specific risk be diversified away by investing in both Luxfer Holdings and Pear Therapeutics 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 Pear Therapeutics 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 Pear Therapeutics, you can compare the effects of market volatilities on Luxfer Holdings and Pear Therapeutics 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 Pear Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Luxfer Holdings and Pear Therapeutics.
Diversification Opportunities for Luxfer Holdings and Pear Therapeutics
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Luxfer and Pear is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Luxfer Holdings PLC and Pear Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pear Therapeutics 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 Pear Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pear Therapeutics has no effect on the direction of Luxfer Holdings i.e., Luxfer Holdings and Pear Therapeutics go up and down completely randomly.
Pair Corralation between Luxfer Holdings and Pear Therapeutics
If you would invest (100.00) in Pear Therapeutics on September 13, 2024 and sell it today you would earn a total of 100.00 from holding Pear Therapeutics or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Luxfer Holdings PLC vs. Pear Therapeutics
Performance |
| Timeline |
| Luxfer Holdings PLC |
| Pear Therapeutics |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Luxfer Holdings and Pear Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Luxfer Holdings and Pear Therapeutics
The main advantage of trading using opposite Luxfer Holdings and Pear Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Luxfer Holdings position performs unexpectedly, Pear Therapeutics 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 Pear Therapeutics will offset losses from the drop in Pear Therapeutics' long position.| Luxfer Holdings vs. Graham | Luxfer Holdings vs. Enerpac Tool Group | Luxfer Holdings vs. Kadant Inc | Luxfer Holdings vs. Omega Flex |
| Pear Therapeutics vs. Tarsus Pharmaceuticals | Pear Therapeutics vs. Catalyst Pharmaceuticals | Pear Therapeutics vs. Space Communication | Pear Therapeutics vs. Genfit |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |