Correlation Between Roebuck Food and Lendinvest PLC
Can any of the company-specific risk be diversified away by investing in both Roebuck Food and Lendinvest PLC 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 Roebuck Food and Lendinvest PLC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Roebuck Food Group and Lendinvest PLC, you can compare the effects of market volatilities on Roebuck Food and Lendinvest PLC 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 Roebuck Food with a short position of Lendinvest PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Roebuck Food and Lendinvest PLC.
Diversification Opportunities for Roebuck Food and Lendinvest PLC
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Roebuck and Lendinvest is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Roebuck Food Group and Lendinvest PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lendinvest PLC and Roebuck Food 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 Roebuck Food Group are associated (or correlated) with Lendinvest PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lendinvest PLC has no effect on the direction of Roebuck Food i.e., Roebuck Food and Lendinvest PLC go up and down completely randomly.
Pair Corralation between Roebuck Food and Lendinvest PLC
If you would invest 2,600 in Lendinvest PLC on September 5, 2024 and sell it today you would earn a total of 40.00 from holding Lendinvest PLC or generate 1.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Roebuck Food Group vs. Lendinvest PLC
Performance |
| Timeline |
| Roebuck Food Group |
| Lendinvest PLC |
Roebuck Food and Lendinvest PLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Roebuck Food and Lendinvest PLC
The main advantage of trading using opposite Roebuck Food and Lendinvest PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Roebuck Food position performs unexpectedly, Lendinvest PLC 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 Lendinvest PLC will offset losses from the drop in Lendinvest PLC's long position.| Roebuck Food vs. Samsung Electronics Co | Roebuck Food vs. Samsung Electronics Co | Roebuck Food vs. Hyundai Motor | Roebuck Food vs. Toyota Motor Corp |
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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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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