Correlation Between Shapeways Holdings, and Luxfer Holdings
Can any of the company-specific risk be diversified away by investing in both Shapeways Holdings, and Luxfer Holdings 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 Shapeways Holdings, and Luxfer Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shapeways Holdings, Common and Luxfer Holdings PLC, you can compare the effects of market volatilities on Shapeways Holdings, and Luxfer Holdings 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 Shapeways Holdings, with a short position of Luxfer Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shapeways Holdings, and Luxfer Holdings.
Diversification Opportunities for Shapeways Holdings, and Luxfer Holdings
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Shapeways and Luxfer is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Shapeways Holdings, Common and Luxfer Holdings PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Luxfer Holdings PLC and Shapeways Holdings, 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 Shapeways Holdings, Common are associated (or correlated) with Luxfer Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Luxfer Holdings PLC has no effect on the direction of Shapeways Holdings, i.e., Shapeways Holdings, and Luxfer Holdings go up and down completely randomly.
Pair Corralation between Shapeways Holdings, and Luxfer Holdings
If you would invest 1,430 in Luxfer Holdings PLC on September 4, 2024 and sell it today you would earn a total of 50.00 from holding Luxfer Holdings PLC or generate 3.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shapeways Holdings, Common vs. Luxfer Holdings PLC
Performance |
| Timeline |
| Shapeways Holdings, |
| Luxfer Holdings PLC |
Shapeways Holdings, and Luxfer Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shapeways Holdings, and Luxfer Holdings
The main advantage of trading using opposite Shapeways Holdings, and Luxfer Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shapeways Holdings, position performs unexpectedly, Luxfer Holdings 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 Luxfer Holdings will offset losses from the drop in Luxfer Holdings' long position.| Shapeways Holdings, vs. JE Cleantech Holdings | Shapeways Holdings, vs. Laser Photonics | Shapeways Holdings, vs. Siemens AG Class | Shapeways Holdings, vs. ATVRockN |
| Luxfer Holdings vs. JE Cleantech Holdings | Luxfer Holdings vs. Laser Photonics | Luxfer Holdings vs. Siemens AG Class | Luxfer Holdings vs. ATVRockN |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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