Correlation Between Spanish Broadcasting and Lumen Technologies
Can any of the company-specific risk be diversified away by investing in both Spanish Broadcasting and Lumen Technologies 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 Spanish Broadcasting and Lumen Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Spanish Broadcasting System and Lumen Technologies, you can compare the effects of market volatilities on Spanish Broadcasting and Lumen Technologies 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 Spanish Broadcasting with a short position of Lumen Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Spanish Broadcasting and Lumen Technologies.
Diversification Opportunities for Spanish Broadcasting and Lumen Technologies
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Spanish and Lumen is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Spanish Broadcasting System and Lumen Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lumen Technologies and Spanish Broadcasting 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 Spanish Broadcasting System are associated (or correlated) with Lumen Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lumen Technologies has no effect on the direction of Spanish Broadcasting i.e., Spanish Broadcasting and Lumen Technologies go up and down completely randomly.
Pair Corralation between Spanish Broadcasting and Lumen Technologies
If you would invest 660.00 in Lumen Technologies on August 30, 2024 and sell it today you would earn a total of 77.00 from holding Lumen Technologies or generate 11.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.35% |
| Values | Daily Returns |
Spanish Broadcasting System vs. Lumen Technologies
Performance |
| Timeline |
| Spanish Broadcasting |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Lumen Technologies |
Spanish Broadcasting and Lumen Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Spanish Broadcasting and Lumen Technologies
The main advantage of trading using opposite Spanish Broadcasting and Lumen Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Spanish Broadcasting position performs unexpectedly, Lumen Technologies 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 Lumen Technologies will offset losses from the drop in Lumen Technologies' long position.| Spanish Broadcasting vs. Saker Aviation Services | Spanish Broadcasting vs. TSS, Common Stock | Spanish Broadcasting vs. FitLife Brands, Common | Spanish Broadcasting vs. Surge Components |
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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 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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