Correlation Between Stoneridge and LOBO EV
Can any of the company-specific risk be diversified away by investing in both Stoneridge and LOBO EV 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 Stoneridge and LOBO EV into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stoneridge and LOBO EV TECHNOLOGIES, you can compare the effects of market volatilities on Stoneridge and LOBO EV 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 Stoneridge with a short position of LOBO EV. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stoneridge and LOBO EV.
Diversification Opportunities for Stoneridge and LOBO EV
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Stoneridge and LOBO is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Stoneridge and LOBO EV TECHNOLOGIES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LOBO EV TECHNOLOGIES and Stoneridge 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 Stoneridge are associated (or correlated) with LOBO EV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LOBO EV TECHNOLOGIES has no effect on the direction of Stoneridge i.e., Stoneridge and LOBO EV go up and down completely randomly.
Pair Corralation between Stoneridge and LOBO EV
Considering the 90-day investment horizon Stoneridge is expected to under-perform the LOBO EV. In addition to that, Stoneridge is 1.03 times more volatile than LOBO EV TECHNOLOGIES. It trades about -0.19 of its total potential returns per unit of risk. LOBO EV TECHNOLOGIES is currently generating about -0.04 per unit of volatility. If you would invest 245.00 in LOBO EV TECHNOLOGIES on August 30, 2024 and sell it today you would lose (23.00) from holding LOBO EV TECHNOLOGIES or give up 9.39% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stoneridge vs. LOBO EV TECHNOLOGIES
Performance |
| Timeline |
| Stoneridge |
| LOBO EV TECHNOLOGIES |
Stoneridge and LOBO EV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stoneridge and LOBO EV
The main advantage of trading using opposite Stoneridge and LOBO EV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stoneridge position performs unexpectedly, LOBO EV 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 LOBO EV will offset losses from the drop in LOBO EV's long position.| Stoneridge vs. Monro Muffler Brake | Stoneridge vs. Motorcar Parts of | Stoneridge vs. Standard Motor Products | Stoneridge vs. Douglas Dynamics |
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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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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