Correlation Between Lloyds Banking and Xiaomi
Can any of the company-specific risk be diversified away by investing in both Lloyds Banking and Xiaomi 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 Lloyds Banking and Xiaomi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lloyds Banking Group and Xiaomi, you can compare the effects of market volatilities on Lloyds Banking and Xiaomi 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 Lloyds Banking with a short position of Xiaomi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lloyds Banking and Xiaomi.
Diversification Opportunities for Lloyds Banking and Xiaomi
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Lloyds and Xiaomi is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Lloyds Banking Group and Xiaomi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiaomi and Lloyds Banking 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 Lloyds Banking Group are associated (or correlated) with Xiaomi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiaomi has no effect on the direction of Lloyds Banking i.e., Lloyds Banking and Xiaomi go up and down completely randomly.
Pair Corralation between Lloyds Banking and Xiaomi
If you would invest 4,950 in Lloyds Banking Group on September 12, 2024 and sell it today you would earn a total of 0.00 from holding Lloyds Banking Group or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Lloyds Banking Group vs. Xiaomi
Performance |
| Timeline |
| Lloyds Banking Group |
| Xiaomi |
Lloyds Banking and Xiaomi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lloyds Banking and Xiaomi
The main advantage of trading using opposite Lloyds Banking and Xiaomi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lloyds Banking position performs unexpectedly, Xiaomi 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 Xiaomi will offset losses from the drop in Xiaomi's long position.| Lloyds Banking vs. Apple Inc | Lloyds Banking vs. Microsoft | Lloyds Banking vs. Alphabet Inc Class A | Lloyds Banking vs. Alphabet Inc |
| Xiaomi vs. Prudential Financial | Xiaomi vs. First Republic Bank | Xiaomi vs. Hoteles City Express | Xiaomi vs. McEwen Mining |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |