Correlation Between Marine Products and LOBO EV
Can any of the company-specific risk be diversified away by investing in both Marine Products and LOBO EV 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 Marine Products and LOBO EV into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Marine Products and LOBO EV TECHNOLOGIES, you can compare the effects of market volatilities on Marine Products and LOBO EV 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 Marine Products with a short position of LOBO EV. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marine Products and LOBO EV.
Diversification Opportunities for Marine Products and LOBO EV
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Marine and LOBO is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Marine Products and LOBO EV TECHNOLOGIES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LOBO EV TECHNOLOGIES and Marine Products 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 Marine Products are associated (or correlated) with LOBO EV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LOBO EV TECHNOLOGIES has no effect on the direction of Marine Products i.e., Marine Products and LOBO EV go up and down completely randomly.
Pair Corralation between Marine Products and LOBO EV
Considering the 90-day investment horizon Marine Products is expected to under-perform the LOBO EV. But the stock apears to be less risky and, when comparing its historical volatility, Marine Products is 3.8 times less risky than LOBO EV. The stock trades about -0.01 of its potential returns per unit of risk. The LOBO EV TECHNOLOGIES is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 307.00 in LOBO EV TECHNOLOGIES on September 3, 2024 and sell it today you would lose (101.00) from holding LOBO EV TECHNOLOGIES or give up 32.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Marine Products vs. LOBO EV TECHNOLOGIES
Performance |
| Timeline |
| Marine Products |
| LOBO EV TECHNOLOGIES |
Marine Products and LOBO EV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marine Products and LOBO EV
The main advantage of trading using opposite Marine Products and LOBO EV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marine Products position performs unexpectedly, LOBO EV 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 LOBO EV will offset losses from the drop in LOBO EV's long position.| Marine Products vs. BRP Inc | Marine Products vs. Brunswick | Marine Products vs. EZGO Technologies | Marine Products vs. SCOR PK |
| LOBO EV vs. Marine Products | LOBO EV vs. CarsalesCom Ltd ADR | LOBO EV vs. Proficient Auto Logistics, | LOBO EV vs. Bright Scholar Education |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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