Correlation Between NYSE Composite and Lmp Automotive
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and Lmp Automotive 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 NYSE Composite and Lmp Automotive into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Lmp Automotive Holdings, you can compare the effects of market volatilities on NYSE Composite and Lmp Automotive 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 NYSE Composite with a short position of Lmp Automotive. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Lmp Automotive.
Diversification Opportunities for NYSE Composite and Lmp Automotive
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between NYSE and Lmp is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Lmp Automotive Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lmp Automotive Holdings and NYSE Composite 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 NYSE Composite are associated (or correlated) with Lmp Automotive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lmp Automotive Holdings has no effect on the direction of NYSE Composite i.e., NYSE Composite and Lmp Automotive go up and down completely randomly.
Pair Corralation between NYSE Composite and Lmp Automotive
If you would invest 1,925,354 in NYSE Composite on September 2, 2024 and sell it today you would earn a total of 101,850 from holding NYSE Composite or generate 5.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
NYSE Composite vs. Lmp Automotive Holdings
Performance |
| Timeline |
NYSE Composite and Lmp Automotive Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Lmp Automotive Holdings
Pair trading matchups for Lmp Automotive
Pair Trading with NYSE Composite and Lmp Automotive
The main advantage of trading using opposite NYSE Composite and Lmp Automotive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, Lmp Automotive 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 Lmp Automotive will offset losses from the drop in Lmp Automotive's long position.| NYSE Composite vs. Simon Property Group | NYSE Composite vs. Merit Medical Systems | NYSE Composite vs. Catalent | NYSE Composite vs. Titan Machinery |
| Lmp Automotive vs. CarGurus | Lmp Automotive vs. KAR Auction Services | Lmp Automotive vs. Kingsway Financial Services | Lmp Automotive vs. Driven Brands Holdings |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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