Correlation Between Luxfer Holdings and 60 Degrees
Can any of the company-specific risk be diversified away by investing in both Luxfer Holdings and 60 Degrees 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 60 Degrees 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 60 Degrees Pharmaceuticals,, you can compare the effects of market volatilities on Luxfer Holdings and 60 Degrees 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 60 Degrees. Check out your portfolio center. Please also check ongoing floating volatility patterns of Luxfer Holdings and 60 Degrees.
Diversification Opportunities for Luxfer Holdings and 60 Degrees
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Luxfer and SXTPW is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Luxfer Holdings PLC and 60 Degrees Pharmaceuticals, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 60 Degrees Pharmaceu 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 60 Degrees. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 60 Degrees Pharmaceu has no effect on the direction of Luxfer Holdings i.e., Luxfer Holdings and 60 Degrees go up and down completely randomly.
Pair Corralation between Luxfer Holdings and 60 Degrees
Given the investment horizon of 90 days Luxfer Holdings is expected to generate 782.82 times less return on investment than 60 Degrees. But when comparing it to its historical volatility, Luxfer Holdings PLC is 35.16 times less risky than 60 Degrees. It trades about 0.01 of its potential returns per unit of risk. 60 Degrees Pharmaceuticals, is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 1.52 in 60 Degrees Pharmaceuticals, on September 1, 2024 and sell it today you would lose (0.04) from holding 60 Degrees Pharmaceuticals, or give up 2.63% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 71.43% |
| Values | Daily Returns |
Luxfer Holdings PLC vs. 60 Degrees Pharmaceuticals,
Performance |
| Timeline |
| Luxfer Holdings PLC |
| 60 Degrees Pharmaceu |
Luxfer Holdings and 60 Degrees Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Luxfer Holdings and 60 Degrees
The main advantage of trading using opposite Luxfer Holdings and 60 Degrees positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Luxfer Holdings position performs unexpectedly, 60 Degrees 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 60 Degrees will offset losses from the drop in 60 Degrees' long position.| Luxfer Holdings vs. Graham | Luxfer Holdings vs. Enerpac Tool Group | Luxfer Holdings vs. Kadant Inc | Luxfer Holdings vs. Omega Flex |
| 60 Degrees vs. Universal Music Group | 60 Degrees vs. Luxfer Holdings PLC | 60 Degrees vs. Sealed Air | 60 Degrees vs. Sphere Entertainment Co |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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