Correlation Between Proficient Auto and Lake Resources
Can any of the company-specific risk be diversified away by investing in both Proficient Auto and Lake Resources 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 Proficient Auto and Lake Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Proficient Auto Logistics, and Lake Resources NL, you can compare the effects of market volatilities on Proficient Auto and Lake Resources 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 Proficient Auto with a short position of Lake Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Proficient Auto and Lake Resources.
Diversification Opportunities for Proficient Auto and Lake Resources
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Proficient and Lake is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Proficient Auto Logistics, and Lake Resources NL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lake Resources NL and Proficient Auto 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 Proficient Auto Logistics, are associated (or correlated) with Lake Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lake Resources NL has no effect on the direction of Proficient Auto i.e., Proficient Auto and Lake Resources go up and down completely randomly.
Pair Corralation between Proficient Auto and Lake Resources
If you would invest (100.00) in Lake Resources NL on October 25, 2024 and sell it today you would earn a total of 100.00 from holding Lake Resources NL or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Proficient Auto Logistics, vs. Lake Resources NL
Performance |
| Timeline |
| Proficient Auto Logi |
| Lake Resources NL |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Proficient Auto and Lake Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Proficient Auto and Lake Resources
The main advantage of trading using opposite Proficient Auto and Lake Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Proficient Auto position performs unexpectedly, Lake Resources 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 Lake Resources will offset losses from the drop in Lake Resources' long position.| Proficient Auto vs. The Coca Cola | Proficient Auto vs. Ispire Technology Common | Proficient Auto vs. Vita Coco | Proficient Auto vs. PepsiCo |
| Lake Resources vs. Transportadora de Gas | Lake Resources vs. Summit Midstream | Lake Resources vs. CDW Corp | Lake Resources vs. Definitive Healthcare Corp |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |