Correlation Between Made Tech and Liontrust Asset
Can any of the company-specific risk be diversified away by investing in both Made Tech and Liontrust Asset 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 Made Tech and Liontrust Asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Made Tech Group and Liontrust Asset Management, you can compare the effects of market volatilities on Made Tech and Liontrust Asset 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 Made Tech with a short position of Liontrust Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Made Tech and Liontrust Asset.
Diversification Opportunities for Made Tech and Liontrust Asset
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Made and Liontrust is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Made Tech Group and Liontrust Asset Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Liontrust Asset Mana and Made Tech 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 Made Tech Group are associated (or correlated) with Liontrust Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Liontrust Asset Mana has no effect on the direction of Made Tech i.e., Made Tech and Liontrust Asset go up and down completely randomly.
Pair Corralation between Made Tech and Liontrust Asset
Assuming the 90 days trading horizon Made Tech Group is expected to generate 1.92 times more return on investment than Liontrust Asset. However, Made Tech is 1.92 times more volatile than Liontrust Asset Management. It trades about 0.19 of its potential returns per unit of risk. Liontrust Asset Management is currently generating about -0.03 per unit of risk. If you would invest 1,900 in Made Tech Group on September 2, 2024 and sell it today you would earn a total of 400.00 from holding Made Tech Group or generate 21.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Made Tech Group vs. Liontrust Asset Management
Performance |
| Timeline |
| Made Tech Group |
| Liontrust Asset Mana |
Made Tech and Liontrust Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Made Tech and Liontrust Asset
The main advantage of trading using opposite Made Tech and Liontrust Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Made Tech position performs unexpectedly, Liontrust Asset 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 Liontrust Asset will offset losses from the drop in Liontrust Asset's long position.| Made Tech vs. Kaufman Et Broad | Made Tech vs. EVS Broadcast Equipment | Made Tech vs. Ecclesiastical Insurance Office | Made Tech vs. Gaztransport et Technigaz |
| Liontrust Asset vs. Liberty Media Corp | Liontrust Asset vs. Cars Inc | Liontrust Asset vs. Universal Display Corp | Liontrust Asset vs. Flutter Entertainment PLC |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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