Correlation Between Luxfer Holdings and Reliv International
Can any of the company-specific risk be diversified away by investing in both Luxfer Holdings and Reliv International 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 Reliv International 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 Reliv International, you can compare the effects of market volatilities on Luxfer Holdings and Reliv International 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 Reliv International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Luxfer Holdings and Reliv International.
Diversification Opportunities for Luxfer Holdings and Reliv International
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Luxfer and Reliv is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Luxfer Holdings PLC and Reliv International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Reliv International 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 Reliv International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Reliv International has no effect on the direction of Luxfer Holdings i.e., Luxfer Holdings and Reliv International go up and down completely randomly.
Pair Corralation between Luxfer Holdings and Reliv International
If you would invest 1,430 in Luxfer Holdings PLC on September 5, 2024 and sell it today you would earn a total of 14.00 from holding Luxfer Holdings PLC or generate 0.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Luxfer Holdings PLC vs. Reliv International
Performance |
| Timeline |
| Luxfer Holdings PLC |
| Reliv International |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Luxfer Holdings and Reliv International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Luxfer Holdings and Reliv International
The main advantage of trading using opposite Luxfer Holdings and Reliv International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Luxfer Holdings position performs unexpectedly, Reliv International 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 Reliv International will offset losses from the drop in Reliv International's long position.| Luxfer Holdings vs. Laser Photonics | Luxfer Holdings vs. Siemens AG Class | Luxfer Holdings vs. ATVRockN | Luxfer Holdings vs. Nuburu Inc |
| Reliv International vs. Luxfer Holdings PLC | Reliv International vs. Paysafe | Reliv International vs. CVR Partners LP | Reliv International vs. JBG SMITH Properties |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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