Correlation Between Tat Techno and Lilium NV
Can any of the company-specific risk be diversified away by investing in both Tat Techno and Lilium NV 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 Tat Techno and Lilium NV into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tat Techno and Lilium NV, you can compare the effects of market volatilities on Tat Techno and Lilium NV 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 Tat Techno with a short position of Lilium NV. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tat Techno and Lilium NV.
Diversification Opportunities for Tat Techno and Lilium NV
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Tat and Lilium is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Tat Techno and Lilium NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lilium NV and Tat Techno 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 Tat Techno are associated (or correlated) with Lilium NV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lilium NV has no effect on the direction of Tat Techno i.e., Tat Techno and Lilium NV go up and down completely randomly.
Pair Corralation between Tat Techno and Lilium NV
Given the investment horizon of 90 days Tat Techno is expected to generate 0.28 times more return on investment than Lilium NV. However, Tat Techno is 3.58 times less risky than Lilium NV. It trades about 0.13 of its potential returns per unit of risk. Lilium NV is currently generating about -0.04 per unit of risk. If you would invest 968.00 in Tat Techno on September 2, 2024 and sell it today you would earn a total of 1,310 from holding Tat Techno or generate 135.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tat Techno vs. Lilium NV
Performance |
| Timeline |
| Tat Techno |
| Lilium NV |
Tat Techno and Lilium NV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tat Techno and Lilium NV
The main advantage of trading using opposite Tat Techno and Lilium NV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tat Techno position performs unexpectedly, Lilium NV 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 Lilium NV will offset losses from the drop in Lilium NV's long position.| Tat Techno vs. Innovative Solutions and | Tat Techno vs. CPI Aerostructures | Tat Techno vs. Air Industries Group | Tat Techno vs. Ballistic Recovery Systems |
| Lilium NV vs. Vertical Aerospace | Lilium NV vs. Ehang Holdings | Lilium NV vs. Rocket Lab USA | Lilium NV vs. Archer Aviation |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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