Correlation Between Luxfer Holdings and Space Communication
Can any of the company-specific risk be diversified away by investing in both Luxfer Holdings and Space Communication 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 Space Communication 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 Space Communication, you can compare the effects of market volatilities on Luxfer Holdings and Space Communication 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 Space Communication. Check out your portfolio center. Please also check ongoing floating volatility patterns of Luxfer Holdings and Space Communication.
Diversification Opportunities for Luxfer Holdings and Space Communication
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Luxfer and Space is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Luxfer Holdings PLC and Space Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Space Communication 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 Space Communication. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Space Communication has no effect on the direction of Luxfer Holdings i.e., Luxfer Holdings and Space Communication go up and down completely randomly.
Pair Corralation between Luxfer Holdings and Space Communication
If you would invest 1,313 in Luxfer Holdings PLC on October 20, 2024 and sell it today you would earn a total of 60.00 from holding Luxfer Holdings PLC or generate 4.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 90.91% |
| Values | Daily Returns |
Luxfer Holdings PLC vs. Space Communication
Performance |
| Timeline |
| Luxfer Holdings PLC |
| Space Communication |
Luxfer Holdings and Space Communication Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Luxfer Holdings and Space Communication
The main advantage of trading using opposite Luxfer Holdings and Space Communication positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Luxfer Holdings position performs unexpectedly, Space Communication 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 Space Communication will offset losses from the drop in Space Communication's long position.| Luxfer Holdings vs. Graham | Luxfer Holdings vs. Enerpac Tool Group | Luxfer Holdings vs. Kadant Inc | Luxfer Holdings vs. Omega Flex |
| Space Communication vs. Stepan Company | Space Communication vs. Pintec Technology Holdings | Space Communication vs. Aldel Financial II | Space Communication 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |