Correlation Between PERENNIAL ENERGY and AJ LUCAS
Can any of the company-specific risk be diversified away by investing in both PERENNIAL ENERGY and AJ LUCAS 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 PERENNIAL ENERGY and AJ LUCAS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PERENNIAL ENERGY HD 01 and AJ LUCAS GROUP, you can compare the effects of market volatilities on PERENNIAL ENERGY and AJ LUCAS 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 PERENNIAL ENERGY with a short position of AJ LUCAS. Check out your portfolio center. Please also check ongoing floating volatility patterns of PERENNIAL ENERGY and AJ LUCAS.
Diversification Opportunities for PERENNIAL ENERGY and AJ LUCAS
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between PERENNIAL and FW9 is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding PERENNIAL ENERGY HD 01 and AJ LUCAS GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AJ LUCAS GROUP and PERENNIAL ENERGY 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 PERENNIAL ENERGY HD 01 are associated (or correlated) with AJ LUCAS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AJ LUCAS GROUP has no effect on the direction of PERENNIAL ENERGY i.e., PERENNIAL ENERGY and AJ LUCAS go up and down completely randomly.
Pair Corralation between PERENNIAL ENERGY and AJ LUCAS
If you would invest 5.82 in PERENNIAL ENERGY HD 01 on September 27, 2024 and sell it today you would earn a total of 4.03 from holding PERENNIAL ENERGY HD 01 or generate 69.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
PERENNIAL ENERGY HD 01 vs. AJ LUCAS GROUP
Performance |
| Timeline |
| PERENNIAL ENERGY |
| AJ LUCAS GROUP |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
PERENNIAL ENERGY and AJ LUCAS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PERENNIAL ENERGY and AJ LUCAS
The main advantage of trading using opposite PERENNIAL ENERGY and AJ LUCAS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PERENNIAL ENERGY position performs unexpectedly, AJ LUCAS 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 AJ LUCAS will offset losses from the drop in AJ LUCAS's long position.| PERENNIAL ENERGY vs. ADRIATIC METALS LS 013355 | PERENNIAL ENERGY vs. GRIFFIN MINING LTD | PERENNIAL ENERGY vs. Harmony Gold Mining | PERENNIAL ENERGY vs. SWISS WATER DECAFFCOFFEE |
| AJ LUCAS vs. MAGIC SOFTWARE ENTR | AJ LUCAS vs. CHINA TELECOM H | AJ LUCAS vs. Comba Telecom Systems | AJ LUCAS vs. Consolidated Communications 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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