Correlation Between Lloyds Banking and Schlumberger
Can any of the company-specific risk be diversified away by investing in both Lloyds Banking and Schlumberger 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 Schlumberger 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 Schlumberger Limited, you can compare the effects of market volatilities on Lloyds Banking and Schlumberger 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 Schlumberger. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lloyds Banking and Schlumberger.
Diversification Opportunities for Lloyds Banking and Schlumberger
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Lloyds and Schlumberger is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Lloyds Banking Group and Schlumberger Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Schlumberger Limited 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 Schlumberger. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Schlumberger Limited has no effect on the direction of Lloyds Banking i.e., Lloyds Banking and Schlumberger go up and down completely randomly.
Pair Corralation between Lloyds Banking and Schlumberger
If you would invest 81,586 in Schlumberger Limited on October 24, 2024 and sell it today you would earn a total of 9,214 from holding Schlumberger Limited or generate 11.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 98.36% |
| Values | Daily Returns |
Lloyds Banking Group vs. Schlumberger Limited
Performance |
| Timeline |
| Lloyds Banking Group |
| Schlumberger Limited |
Lloyds Banking and Schlumberger Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lloyds Banking and Schlumberger
The main advantage of trading using opposite Lloyds Banking and Schlumberger positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lloyds Banking position performs unexpectedly, Schlumberger 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 Schlumberger will offset losses from the drop in Schlumberger's long position.| Lloyds Banking vs. Monster Beverage Corp | Lloyds Banking vs. DXC Technology | Lloyds Banking vs. CVS Health | Lloyds Banking vs. Grupo Industrial Saltillo |
| Schlumberger vs. Martin Marietta Materials | Schlumberger vs. Cognizant Technology Solutions | Schlumberger vs. Lloyds Banking Group | Schlumberger vs. DXC Technology |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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