Correlation Between Victory Integrity and Lufax Holding
Can any of the company-specific risk be diversified away by investing in both Victory Integrity and Lufax Holding 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 Victory Integrity and Lufax Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Victory Integrity Smallmid Cap and Lufax Holding, you can compare the effects of market volatilities on Victory Integrity and Lufax Holding 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 Victory Integrity with a short position of Lufax Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Victory Integrity and Lufax Holding.
Diversification Opportunities for Victory Integrity and Lufax Holding
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Victory and Lufax is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Victory Integrity Smallmid Cap and Lufax Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lufax Holding and Victory Integrity 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 Victory Integrity Smallmid Cap are associated (or correlated) with Lufax Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lufax Holding has no effect on the direction of Victory Integrity i.e., Victory Integrity and Lufax Holding go up and down completely randomly.
Pair Corralation between Victory Integrity and Lufax Holding
Assuming the 90 days horizon Victory Integrity is expected to generate 2.66 times less return on investment than Lufax Holding. But when comparing it to its historical volatility, Victory Integrity Smallmid Cap is 5.16 times less risky than Lufax Holding. It trades about 0.07 of its potential returns per unit of risk. Lufax Holding is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 226.00 in Lufax Holding on September 12, 2024 and sell it today you would earn a total of 36.50 from holding Lufax Holding or generate 16.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.7% |
| Values | Daily Returns |
Victory Integrity Smallmid Cap vs. Lufax Holding
Performance |
| Timeline |
| Victory Integrity |
| Lufax Holding |
Victory Integrity and Lufax Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Victory Integrity and Lufax Holding
The main advantage of trading using opposite Victory Integrity and Lufax Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Victory Integrity position performs unexpectedly, Lufax Holding 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 Lufax Holding will offset losses from the drop in Lufax Holding's long position.| Victory Integrity vs. Victory Trivalent International | Victory Integrity vs. Victory Diversified Stock | Victory Integrity vs. Victory Sophus Emerging | Victory Integrity vs. Victory Diversified Stock |
| Lufax Holding vs. Victory Integrity Smallmid Cap | Lufax Holding vs. Hilton Worldwide Holdings | Lufax Holding vs. NVIDIA | Lufax Holding vs. JPMorgan Chase Co |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |