Correlation Between Saule Technologies and LPP SA
Can any of the company-specific risk be diversified away by investing in both Saule Technologies and LPP SA 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 Saule Technologies and LPP SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Saule Technologies SA and LPP SA, you can compare the effects of market volatilities on Saule Technologies and LPP SA 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 Saule Technologies with a short position of LPP SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saule Technologies and LPP SA.
Diversification Opportunities for Saule Technologies and LPP SA
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Saule and LPP is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Saule Technologies SA and LPP SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LPP SA and Saule Technologies 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 Saule Technologies SA are associated (or correlated) with LPP SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LPP SA has no effect on the direction of Saule Technologies i.e., Saule Technologies and LPP SA go up and down completely randomly.
Pair Corralation between Saule Technologies and LPP SA
Assuming the 90 days trading horizon Saule Technologies SA is expected to under-perform the LPP SA. In addition to that, Saule Technologies is 1.1 times more volatile than LPP SA. It trades about -0.06 of its total potential returns per unit of risk. LPP SA is currently generating about 0.05 per unit of volatility. If you would invest 924,215 in LPP SA on September 1, 2024 and sell it today you would earn a total of 641,785 from holding LPP SA or generate 69.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Saule Technologies SA vs. LPP SA
Performance |
| Timeline |
| Saule Technologies |
| LPP SA |
Saule Technologies and LPP SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saule Technologies and LPP SA
The main advantage of trading using opposite Saule Technologies and LPP SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saule Technologies position performs unexpectedly, LPP SA 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 LPP SA will offset losses from the drop in LPP SA's long position.| Saule Technologies vs. SOFTWARE MANSION SPOLKA | Saule Technologies vs. Investment Friends Capital | Saule Technologies vs. Cloud Technologies SA | Saule Technologies vs. Quantum Software SA |
| LPP SA vs. Santander Bank Polska | LPP SA vs. Saule Technologies SA | LPP SA vs. LSI Software SA | LPP SA vs. PMPG Polskie Media |
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.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |