Correlation Between TEN SQUARE and LPP SA
Can any of the company-specific risk be diversified away by investing in both TEN SQUARE 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 TEN SQUARE and LPP SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TEN SQUARE GAMES and LPP SA, you can compare the effects of market volatilities on TEN SQUARE 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 TEN SQUARE with a short position of LPP SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of TEN SQUARE and LPP SA.
Diversification Opportunities for TEN SQUARE and LPP SA
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between TEN and LPP is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding TEN SQUARE GAMES and LPP SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LPP SA and TEN SQUARE 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 TEN SQUARE GAMES 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 TEN SQUARE i.e., TEN SQUARE and LPP SA go up and down completely randomly.
Pair Corralation between TEN SQUARE and LPP SA
Assuming the 90 days trading horizon TEN SQUARE is expected to generate 7.59 times less return on investment than LPP SA. But when comparing it to its historical volatility, TEN SQUARE GAMES is 1.38 times less risky than LPP SA. It trades about 0.01 of its potential returns per unit of risk. LPP SA is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,371,660 in LPP SA on September 2, 2024 and sell it today you would earn a total of 194,340 from holding LPP SA or generate 14.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
TEN SQUARE GAMES vs. LPP SA
Performance |
| Timeline |
| TEN SQUARE GAMES |
| LPP SA |
TEN SQUARE and LPP SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TEN SQUARE and LPP SA
The main advantage of trading using opposite TEN SQUARE and LPP SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TEN SQUARE 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.| TEN SQUARE vs. Medicalg | TEN SQUARE vs. GreenX Metals | TEN SQUARE vs. Saule Technologies SA | TEN SQUARE vs. Echo Investment SA |
| LPP SA vs. True Games Syndicate | LPP SA vs. PLAYWAY SA | LPP SA vs. TEN SQUARE GAMES | LPP SA vs. GreenX Metals |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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