Correlation Between Lloyds Banking and Southern Copper
Can any of the company-specific risk be diversified away by investing in both Lloyds Banking and Southern Copper 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 Southern Copper 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 Southern Copper, you can compare the effects of market volatilities on Lloyds Banking and Southern Copper 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 Southern Copper. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lloyds Banking and Southern Copper.
Diversification Opportunities for Lloyds Banking and Southern Copper
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Lloyds and Southern is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Lloyds Banking Group and Southern Copper in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Southern Copper 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 Southern Copper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Southern Copper has no effect on the direction of Lloyds Banking i.e., Lloyds Banking and Southern Copper go up and down completely randomly.
Pair Corralation between Lloyds Banking and Southern Copper
If you would invest 199,641 in Southern Copper on August 28, 2024 and sell it today you would earn a total of 10,549 from holding Southern Copper or generate 5.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lloyds Banking Group vs. Southern Copper
Performance |
| Timeline |
| Lloyds Banking Group |
| Southern Copper |
Lloyds Banking and Southern Copper Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lloyds Banking and Southern Copper
The main advantage of trading using opposite Lloyds Banking and Southern Copper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lloyds Banking position performs unexpectedly, Southern Copper 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 Southern Copper will offset losses from the drop in Southern Copper's long position.| Lloyds Banking vs. Apple Inc | Lloyds Banking vs. Microsoft | Lloyds Banking vs. Alphabet Inc Class A | Lloyds Banking vs. Alphabet Inc |
| Southern Copper vs. Prudential Financial | Southern Copper vs. Verizon Communications | Southern Copper vs. Ross Stores | Southern Copper 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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