Correlation Between Cartesian Growth and LAMF Global
Can any of the company-specific risk be diversified away by investing in both Cartesian Growth and LAMF Global 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 Cartesian Growth and LAMF Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cartesian Growth and LAMF Global Ventures, you can compare the effects of market volatilities on Cartesian Growth and LAMF Global 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 Cartesian Growth with a short position of LAMF Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cartesian Growth and LAMF Global.
Diversification Opportunities for Cartesian Growth and LAMF Global
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Cartesian and LAMF is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Cartesian Growth and LAMF Global Ventures in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LAMF Global Ventures and Cartesian Growth 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 Cartesian Growth are associated (or correlated) with LAMF Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LAMF Global Ventures has no effect on the direction of Cartesian Growth i.e., Cartesian Growth and LAMF Global go up and down completely randomly.
Pair Corralation between Cartesian Growth and LAMF Global
If you would invest 1,160 in Cartesian Growth on October 22, 2024 and sell it today you would earn a total of 3.00 from holding Cartesian Growth or generate 0.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 0.8% |
| Values | Daily Returns |
Cartesian Growth vs. LAMF Global Ventures
Performance |
| Timeline |
| Cartesian Growth |
| LAMF Global Ventures |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Cartesian Growth and LAMF Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cartesian Growth and LAMF Global
The main advantage of trading using opposite Cartesian Growth and LAMF Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cartesian Growth position performs unexpectedly, LAMF Global 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 LAMF Global will offset losses from the drop in LAMF Global's long position.| Cartesian Growth vs. Investcorp India Acquisition | Cartesian Growth vs. Rf Acquisition Corp | Cartesian Growth vs. Metal Sky Star |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |