Correlation Between Marwyn Value and Lloyds Banking
Can any of the company-specific risk be diversified away by investing in both Marwyn Value and Lloyds Banking 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 Marwyn Value and Lloyds Banking into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Marwyn Value Investors and Lloyds Banking Group, you can compare the effects of market volatilities on Marwyn Value and Lloyds Banking 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 Marwyn Value with a short position of Lloyds Banking. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marwyn Value and Lloyds Banking.
Diversification Opportunities for Marwyn Value and Lloyds Banking
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Marwyn and Lloyds is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Marwyn Value Investors and Lloyds Banking Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lloyds Banking Group and Marwyn Value 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 Marwyn Value Investors are associated (or correlated) with Lloyds Banking. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lloyds Banking Group has no effect on the direction of Marwyn Value i.e., Marwyn Value and Lloyds Banking go up and down completely randomly.
Pair Corralation between Marwyn Value and Lloyds Banking
Assuming the 90 days trading horizon Marwyn Value Investors is expected to under-perform the Lloyds Banking. But the stock apears to be less risky and, when comparing its historical volatility, Marwyn Value Investors is 2.63 times less risky than Lloyds Banking. The stock trades about -0.4 of its potential returns per unit of risk. The Lloyds Banking Group is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 5,340 in Lloyds Banking Group on September 1, 2024 and sell it today you would lose (34.00) from holding Lloyds Banking Group or give up 0.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Marwyn Value Investors vs. Lloyds Banking Group
Performance |
| Timeline |
| Marwyn Value Investors |
| Lloyds Banking Group |
Marwyn Value and Lloyds Banking Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marwyn Value and Lloyds Banking
The main advantage of trading using opposite Marwyn Value and Lloyds Banking positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marwyn Value position performs unexpectedly, Lloyds Banking 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 Lloyds Banking will offset losses from the drop in Lloyds Banking's long position.| Marwyn Value vs. Toyota Motor Corp | Marwyn Value vs. SoftBank Group Corp | Marwyn Value vs. OTP Bank Nyrt | Marwyn Value vs. Las Vegas Sands |
| Lloyds Banking vs. Charter Communications Cl | Lloyds Banking vs. Cairo Communication SpA | Lloyds Banking vs. Naturhouse Health SA | Lloyds Banking vs. Inspiration Healthcare Group |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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