Correlation Between Roku and Luduson G
Can any of the company-specific risk be diversified away by investing in both Roku and Luduson G 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 Roku and Luduson G into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Roku Inc and Luduson G, you can compare the effects of market volatilities on Roku and Luduson G 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 Roku with a short position of Luduson G. Check out your portfolio center. Please also check ongoing floating volatility patterns of Roku and Luduson G.
Diversification Opportunities for Roku and Luduson G
Good diversification
The 3 months correlation between Roku and Luduson is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Roku Inc and Luduson G in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Luduson G and Roku 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 Roku Inc are associated (or correlated) with Luduson G. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Luduson G has no effect on the direction of Roku i.e., Roku and Luduson G go up and down completely randomly.
Pair Corralation between Roku and Luduson G
Given the investment horizon of 90 days Roku is expected to generate 6.59 times less return on investment than Luduson G. But when comparing it to its historical volatility, Roku Inc is 6.27 times less risky than Luduson G. It trades about 0.07 of its potential returns per unit of risk. Luduson G is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 1.14 in Luduson G on September 13, 2024 and sell it today you would lose (0.56) from holding Luduson G or give up 49.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.67% |
| Values | Daily Returns |
Roku Inc vs. Luduson G
Performance |
| Timeline |
| Roku Inc |
| Luduson G |
Roku and Luduson G Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Roku and Luduson G
The main advantage of trading using opposite Roku and Luduson G positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Roku position performs unexpectedly, Luduson G 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 Luduson G will offset losses from the drop in Luduson G's long position.| Roku vs. Walt Disney | Roku vs. AMC Entertainment Holdings | Roku vs. Paramount Global Class | Roku vs. Warner Bros Discovery |
| Luduson G vs. Roku Inc | Luduson G vs. SNM Gobal Holdings | Luduson G vs. Seven Arts Entertainment | Luduson G vs. All For One |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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