Correlation Between Sui and LAMB

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Can any of the company-specific risk be diversified away by investing in both Sui and LAMB 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 Sui and LAMB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sui and LAMB, you can compare the effects of market volatilities on Sui and LAMB 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 Sui with a short position of LAMB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sui and LAMB.

Diversification Opportunities for Sui and LAMB

-0.16
  Correlation Coefficient

Good diversification

The 3 months correlation between Sui and LAMB is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Sui and LAMB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LAMB and Sui 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 Sui are associated (or correlated) with LAMB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LAMB has no effect on the direction of Sui i.e., Sui and LAMB go up and down completely randomly.

Pair Corralation between Sui and LAMB

Assuming the 90 days trading horizon Sui is expected to generate 0.95 times more return on investment than LAMB. However, Sui is 1.05 times less risky than LAMB. It trades about 0.16 of its potential returns per unit of risk. LAMB is currently generating about -0.1 per unit of risk. If you would invest  106.00  in Sui on August 26, 2024 and sell it today you would earn a total of  250.00  from holding Sui or generate 235.85% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Sui  vs.  LAMB

 Performance 
       Timeline  
Sui 

Risk-Adjusted Performance

28 of 100

 
Weak
 
Strong
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Sui are ranked lower than 28 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady forward indicators, Sui exhibited solid returns over the last few months and may actually be approaching a breakup point.
LAMB 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days LAMB has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unsteady performance, the Crypto's fundamental indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for LAMB shareholders.

Sui and LAMB Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Sui and LAMB

The main advantage of trading using opposite Sui and LAMB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sui position performs unexpectedly, LAMB 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 LAMB will offset losses from the drop in LAMB's long position.
The idea behind Sui and LAMB pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.

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