Correlation Between Grupo Sports and Lloyds Banking
Can any of the company-specific risk be diversified away by investing in both Grupo Sports and Lloyds Banking 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 Grupo Sports and Lloyds Banking into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grupo Sports World and Lloyds Banking Group, you can compare the effects of market volatilities on Grupo Sports and Lloyds Banking 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 Grupo Sports with a short position of Lloyds Banking. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Sports and Lloyds Banking.
Diversification Opportunities for Grupo Sports and Lloyds Banking
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Grupo and Lloyds is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Sports World and Lloyds Banking Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lloyds Banking Group and Grupo Sports 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 Grupo Sports World are associated (or correlated) with Lloyds Banking. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lloyds Banking Group has no effect on the direction of Grupo Sports i.e., Grupo Sports and Lloyds Banking go up and down completely randomly.
Pair Corralation between Grupo Sports and Lloyds Banking
Assuming the 90 days trading horizon Grupo Sports World is expected to under-perform the Lloyds Banking. But the stock apears to be less risky and, when comparing its historical volatility, Grupo Sports World is 4.57 times less risky than Lloyds Banking. The stock trades about -0.04 of its potential returns per unit of risk. The Lloyds Banking Group is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 4,950 in Lloyds Banking Group on November 2, 2024 and sell it today you would earn a total of 1,274 from holding Lloyds Banking Group or generate 25.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grupo Sports World vs. Lloyds Banking Group
Performance |
| Timeline |
| Grupo Sports World |
| Lloyds Banking Group |
Grupo Sports and Lloyds Banking Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grupo Sports and Lloyds Banking
The main advantage of trading using opposite Grupo Sports and Lloyds Banking positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Sports position performs unexpectedly, Lloyds Banking 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 Lloyds Banking will offset losses from the drop in Lloyds Banking's long position.| Grupo Sports vs. CVS Health | Grupo Sports vs. Grupo Industrial Saltillo | Grupo Sports vs. Micron Technology | Grupo Sports vs. Grupo Hotelero Santa |
| Lloyds Banking vs. Verizon Communications | Lloyds Banking vs. FibraHotel | Lloyds Banking vs. Grupo Sports World | Lloyds Banking vs. Costco Wholesale |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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