Correlation Between Luxfer Holdings and PACIFIC
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By analyzing existing cross correlation between Luxfer Holdings PLC and PACIFIC GAS AND, you can compare the effects of market volatilities on Luxfer Holdings and PACIFIC 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 PACIFIC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Luxfer Holdings and PACIFIC.
Diversification Opportunities for Luxfer Holdings and PACIFIC
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Luxfer and PACIFIC is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Luxfer Holdings PLC and PACIFIC GAS AND in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PACIFIC GAS AND 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 PACIFIC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PACIFIC GAS AND has no effect on the direction of Luxfer Holdings i.e., Luxfer Holdings and PACIFIC go up and down completely randomly.
Pair Corralation between Luxfer Holdings and PACIFIC
Given the investment horizon of 90 days Luxfer Holdings PLC is expected to generate 4.3 times more return on investment than PACIFIC. However, Luxfer Holdings is 4.3 times more volatile than PACIFIC GAS AND. It trades about 0.14 of its potential returns per unit of risk. PACIFIC GAS AND is currently generating about -0.24 per unit of risk. If you would invest 1,325 in Luxfer Holdings PLC on October 25, 2024 and sell it today you would earn a total of 64.00 from holding Luxfer Holdings PLC or generate 4.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 90.0% |
| Values | Daily Returns |
Luxfer Holdings PLC vs. PACIFIC GAS AND
Performance |
| Timeline |
| Luxfer Holdings PLC |
| PACIFIC GAS AND |
Luxfer Holdings and PACIFIC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Luxfer Holdings and PACIFIC
The main advantage of trading using opposite Luxfer Holdings and PACIFIC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Luxfer Holdings position performs unexpectedly, PACIFIC 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 PACIFIC will offset losses from the drop in PACIFIC's long position.| Luxfer Holdings vs. Graham | Luxfer Holdings vs. Enerpac Tool Group | Luxfer Holdings vs. Kadant Inc | Luxfer Holdings vs. Omega Flex |
| PACIFIC vs. Bank of New | PACIFIC vs. PennantPark Floating Rate | PACIFIC vs. SEI Investments | PACIFIC vs. Omni Health |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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