Correlation Between Luxfer Holdings and GENERAL
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By analyzing existing cross correlation between Luxfer Holdings PLC and GENERAL MLS INC, you can compare the effects of market volatilities on Luxfer Holdings and GENERAL 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 GENERAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Luxfer Holdings and GENERAL.
Diversification Opportunities for Luxfer Holdings and GENERAL
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Luxfer and GENERAL is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Luxfer Holdings PLC and GENERAL MLS INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GENERAL MLS INC 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 GENERAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GENERAL MLS INC has no effect on the direction of Luxfer Holdings i.e., Luxfer Holdings and GENERAL go up and down completely randomly.
Pair Corralation between Luxfer Holdings and GENERAL
Given the investment horizon of 90 days Luxfer Holdings PLC is expected to generate 5.69 times more return on investment than GENERAL. However, Luxfer Holdings is 5.69 times more volatile than GENERAL MLS INC. It trades about 0.14 of its potential returns per unit of risk. GENERAL MLS INC is currently generating about -0.13 per unit of risk. If you would invest 1,141 in Luxfer Holdings PLC on September 3, 2024 and sell it today you would earn a total of 295.00 from holding Luxfer Holdings PLC or generate 25.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 89.06% |
| Values | Daily Returns |
Luxfer Holdings PLC vs. GENERAL MLS INC
Performance |
| Timeline |
| Luxfer Holdings PLC |
| GENERAL MLS INC |
Luxfer Holdings and GENERAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Luxfer Holdings and GENERAL
The main advantage of trading using opposite Luxfer Holdings and GENERAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Luxfer Holdings position performs unexpectedly, GENERAL 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 GENERAL will offset losses from the drop in GENERAL's long position.| Luxfer Holdings vs. Graham | Luxfer Holdings vs. Enerpac Tool Group | Luxfer Holdings vs. Kadant Inc | Luxfer Holdings vs. Omega Flex |
| GENERAL vs. Eastman Chemical | GENERAL vs. CF Industries Holdings | GENERAL vs. Luxfer Holdings PLC | GENERAL vs. Videolocity International |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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