Correlation Between Luxfer Holdings and 552953CD1
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By analyzing existing cross correlation between Luxfer Holdings PLC and MGM Resorts International, you can compare the effects of market volatilities on Luxfer Holdings and 552953CD1 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 552953CD1. Check out your portfolio center. Please also check ongoing floating volatility patterns of Luxfer Holdings and 552953CD1.
Diversification Opportunities for Luxfer Holdings and 552953CD1
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Luxfer and 552953CD1 is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Luxfer Holdings PLC and MGM Resorts International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MGM Resorts International 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 552953CD1. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MGM Resorts International has no effect on the direction of Luxfer Holdings i.e., Luxfer Holdings and 552953CD1 go up and down completely randomly.
Pair Corralation between Luxfer Holdings and 552953CD1
Given the investment horizon of 90 days Luxfer Holdings is expected to generate 31.21 times less return on investment than 552953CD1. But when comparing it to its historical volatility, Luxfer Holdings PLC is 17.54 times less risky than 552953CD1. It trades about 0.02 of its potential returns per unit of risk. MGM Resorts International is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 9,213 in MGM Resorts International on September 14, 2024 and sell it today you would earn a total of 412.00 from holding MGM Resorts International or generate 4.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 96.56% |
| Values | Daily Returns |
Luxfer Holdings PLC vs. MGM Resorts International
Performance |
| Timeline |
| Luxfer Holdings PLC |
| MGM Resorts International |
Luxfer Holdings and 552953CD1 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Luxfer Holdings and 552953CD1
The main advantage of trading using opposite Luxfer Holdings and 552953CD1 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Luxfer Holdings position performs unexpectedly, 552953CD1 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 552953CD1 will offset losses from the drop in 552953CD1'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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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