Correlation Between LZG International and Logiq
Can any of the company-specific risk be diversified away by investing in both LZG International and Logiq 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 LZG International and Logiq into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LZG International and Logiq Inc, you can compare the effects of market volatilities on LZG International and Logiq 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 LZG International with a short position of Logiq. Check out your portfolio center. Please also check ongoing floating volatility patterns of LZG International and Logiq.
Diversification Opportunities for LZG International and Logiq
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between LZG and Logiq is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding LZG International and Logiq Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Logiq Inc and LZG International 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 LZG International are associated (or correlated) with Logiq. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Logiq Inc has no effect on the direction of LZG International i.e., LZG International and Logiq go up and down completely randomly.
Pair Corralation between LZG International and Logiq
Given the investment horizon of 90 days LZG International is expected to generate 4.8 times more return on investment than Logiq. However, LZG International is 4.8 times more volatile than Logiq Inc. It trades about 0.08 of its potential returns per unit of risk. Logiq Inc is currently generating about 0.0 per unit of risk. If you would invest 65.00 in LZG International on September 2, 2024 and sell it today you would lose (64.98) from holding LZG International or give up 99.97% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.73% |
| Values | Daily Returns |
LZG International vs. Logiq Inc
Performance |
| Timeline |
| LZG International |
| Logiq Inc |
LZG International and Logiq Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LZG International and Logiq
The main advantage of trading using opposite LZG International and Logiq positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LZG International position performs unexpectedly, Logiq 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 Logiq will offset losses from the drop in Logiq's long position.| LZG International vs. RenoWorks Software | LZG International vs. 01 Communique Laboratory | LZG International vs. LifeSpeak | LZG International vs. RESAAS Services |
| Logiq vs. Tenet Fintech Group | Logiq vs. FansUnite Entertainment | Logiq vs. FingerMotion | Logiq vs. GoLogiq |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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