Correlation Between LYFT and Umicore SA
Can any of the company-specific risk be diversified away by investing in both LYFT and Umicore SA at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining LYFT and Umicore SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LYFT Inc and Umicore SA ADR, you can compare the effects of market volatilities on LYFT and Umicore SA 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 LYFT with a short position of Umicore SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of LYFT and Umicore SA.
Diversification Opportunities for LYFT and Umicore SA
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between LYFT and Umicore is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding LYFT Inc and Umicore SA ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Umicore SA ADR and LYFT 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 LYFT Inc are associated (or correlated) with Umicore SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Umicore SA ADR has no effect on the direction of LYFT i.e., LYFT and Umicore SA go up and down completely randomly.
Pair Corralation between LYFT and Umicore SA
Given the investment horizon of 90 days LYFT Inc is expected to generate 2.39 times more return on investment than Umicore SA. However, LYFT is 2.39 times more volatile than Umicore SA ADR. It trades about 0.18 of its potential returns per unit of risk. Umicore SA ADR is currently generating about -0.24 per unit of risk. If you would invest 1,389 in LYFT Inc on August 27, 2024 and sell it today you would earn a total of 290.00 from holding LYFT Inc or generate 20.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
LYFT Inc vs. Umicore SA ADR
Performance |
| Timeline |
| LYFT Inc |
| Umicore SA ADR |
LYFT and Umicore SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LYFT and Umicore SA
The main advantage of trading using opposite LYFT and Umicore SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LYFT position performs unexpectedly, Umicore SA 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 Umicore SA will offset losses from the drop in Umicore SA's long position.| LYFT vs. Kingsoft Cloud Holdings | LYFT vs. AMTD Digital | LYFT vs. Zoom Video Communications | LYFT vs. Snowflake |
| Umicore SA vs. TOMI Environmental Solutions | Umicore SA vs. Zurn Elkay Water | Umicore SA vs. Federal Signal | Umicore SA vs. Energy Recovery |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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