Correlation Between Luxfer Holdings and GILEAD
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By analyzing existing cross correlation between Luxfer Holdings PLC and GILEAD SCIENCES INC, you can compare the effects of market volatilities on Luxfer Holdings and GILEAD 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 GILEAD. Check out your portfolio center. Please also check ongoing floating volatility patterns of Luxfer Holdings and GILEAD.
Diversification Opportunities for Luxfer Holdings and GILEAD
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Luxfer and GILEAD is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Luxfer Holdings PLC and GILEAD SCIENCES INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GILEAD SCIENCES 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 GILEAD. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GILEAD SCIENCES INC has no effect on the direction of Luxfer Holdings i.e., Luxfer Holdings and GILEAD go up and down completely randomly.
Pair Corralation between Luxfer Holdings and GILEAD
Given the investment horizon of 90 days Luxfer Holdings PLC is expected to under-perform the GILEAD. In addition to that, Luxfer Holdings is 1.38 times more volatile than GILEAD SCIENCES INC. It trades about -0.12 of its total potential returns per unit of risk. GILEAD SCIENCES INC is currently generating about -0.01 per unit of volatility. If you would invest 10,297 in GILEAD SCIENCES INC on September 12, 2024 and sell it today you would lose (61.00) from holding GILEAD SCIENCES INC or give up 0.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Luxfer Holdings PLC vs. GILEAD SCIENCES INC
Performance |
| Timeline |
| Luxfer Holdings PLC |
| GILEAD SCIENCES INC |
Luxfer Holdings and GILEAD Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Luxfer Holdings and GILEAD
The main advantage of trading using opposite Luxfer Holdings and GILEAD positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Luxfer Holdings position performs unexpectedly, GILEAD 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 GILEAD will offset losses from the drop in GILEAD's long position.| Luxfer Holdings vs. Graham | Luxfer Holdings vs. Enerpac Tool Group | Luxfer Holdings vs. Kadant Inc | Luxfer Holdings vs. Omega Flex |
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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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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