Correlation Between Proficient Auto and Lakeside Holding
Can any of the company-specific risk be diversified away by investing in both Proficient Auto and Lakeside Holding 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 Lakeside Holding 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 Lakeside Holding Limited, you can compare the effects of market volatilities on Proficient Auto and Lakeside Holding 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 Lakeside Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Proficient Auto and Lakeside Holding.
Diversification Opportunities for Proficient Auto and Lakeside Holding
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Proficient and Lakeside is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Proficient Auto Logistics, and Lakeside Holding Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lakeside Holding 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 Lakeside Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lakeside Holding has no effect on the direction of Proficient Auto i.e., Proficient Auto and Lakeside Holding go up and down completely randomly.
Pair Corralation between Proficient Auto and Lakeside Holding
Considering the 90-day investment horizon Proficient Auto Logistics, is expected to under-perform the Lakeside Holding. But the stock apears to be less risky and, when comparing its historical volatility, Proficient Auto Logistics, is 2.89 times less risky than Lakeside Holding. The stock trades about -0.05 of its potential returns per unit of risk. The Lakeside Holding Limited is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 401.00 in Lakeside Holding Limited on November 5, 2024 and sell it today you would lose (190.00) from holding Lakeside Holding Limited or give up 47.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 81.08% |
| Values | Daily Returns |
Proficient Auto Logistics, vs. Lakeside Holding Limited
Performance |
| Timeline |
| Proficient Auto Logi |
| Lakeside Holding |
Proficient Auto and Lakeside Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Proficient Auto and Lakeside Holding
The main advantage of trading using opposite Proficient Auto and Lakeside Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Proficient Auto position performs unexpectedly, Lakeside Holding 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 Lakeside Holding will offset losses from the drop in Lakeside Holding's long position.| Proficient Auto vs. Expeditors International of | Proficient Auto vs. FedEx | Proficient Auto vs. BingEx | Proficient Auto vs. Globavend Holdings Limited |
| Lakeside Holding vs. X FAB Silicon Foundries | Lakeside Holding vs. Q2 Holdings | Lakeside Holding vs. Luxfer Holdings PLC | Lakeside Holding vs. Where Food Comes |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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