Correlation Between Paltalk and LGL
Can any of the company-specific risk be diversified away by investing in both Paltalk and LGL 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 Paltalk and LGL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Paltalk and LGL Group, you can compare the effects of market volatilities on Paltalk and LGL 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 Paltalk with a short position of LGL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Paltalk and LGL.
Diversification Opportunities for Paltalk and LGL
Very good diversification
The 3 months correlation between Paltalk and LGL is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Paltalk and LGL Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LGL Group and Paltalk 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 Paltalk are associated (or correlated) with LGL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LGL Group has no effect on the direction of Paltalk i.e., Paltalk and LGL go up and down completely randomly.
Pair Corralation between Paltalk and LGL
Given the investment horizon of 90 days Paltalk is expected to generate 1.26 times less return on investment than LGL. In addition to that, Paltalk is 2.31 times more volatile than LGL Group. It trades about 0.01 of its total potential returns per unit of risk. LGL Group is currently generating about 0.02 per unit of volatility. If you would invest 598.00 in LGL Group on August 28, 2024 and sell it today you would earn a total of 2.00 from holding LGL Group or generate 0.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Paltalk vs. LGL Group
Performance |
| Timeline |
| Paltalk |
| LGL Group |
Paltalk and LGL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Paltalk and LGL
The main advantage of trading using opposite Paltalk and LGL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Paltalk position performs unexpectedly, LGL 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 LGL will offset losses from the drop in LGL's long position.| Paltalk vs. Sphere 3D Corp | Paltalk vs. Society Pass | Paltalk vs. Marin Software | Paltalk vs. EzFill 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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