Correlation Between Luxfer Holdings and 512807AN8
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By analyzing existing cross correlation between Luxfer Holdings PLC and LAM RESH P, you can compare the effects of market volatilities on Luxfer Holdings and 512807AN8 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 512807AN8. Check out your portfolio center. Please also check ongoing floating volatility patterns of Luxfer Holdings and 512807AN8.
Diversification Opportunities for Luxfer Holdings and 512807AN8
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Luxfer and 512807AN8 is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Luxfer Holdings PLC and LAM RESH P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LAM RESH P 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 512807AN8. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LAM RESH P has no effect on the direction of Luxfer Holdings i.e., Luxfer Holdings and 512807AN8 go up and down completely randomly.
Pair Corralation between Luxfer Holdings and 512807AN8
Given the investment horizon of 90 days Luxfer Holdings PLC is expected to generate 9.15 times more return on investment than 512807AN8. However, Luxfer Holdings is 9.15 times more volatile than LAM RESH P. It trades about 0.08 of its potential returns per unit of risk. LAM RESH P is currently generating about -0.14 per unit of risk. If you would invest 1,286 in Luxfer Holdings PLC on September 13, 2024 and sell it today you would earn a total of 116.00 from holding Luxfer Holdings PLC or generate 9.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 88.1% |
| Values | Daily Returns |
Luxfer Holdings PLC vs. LAM RESH P
Performance |
| Timeline |
| Luxfer Holdings PLC |
| LAM RESH P |
Luxfer Holdings and 512807AN8 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Luxfer Holdings and 512807AN8
The main advantage of trading using opposite Luxfer Holdings and 512807AN8 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Luxfer Holdings position performs unexpectedly, 512807AN8 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 512807AN8 will offset losses from the drop in 512807AN8'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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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