Correlation Between DAVITA and Luxfer Holdings
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By analyzing existing cross correlation between DAVITA INC 375 and Luxfer Holdings PLC, you can compare the effects of market volatilities on DAVITA and Luxfer Holdings 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 DAVITA with a short position of Luxfer Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAVITA and Luxfer Holdings.
Diversification Opportunities for DAVITA and Luxfer Holdings
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between DAVITA and Luxfer is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding DAVITA INC 375 and Luxfer Holdings PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Luxfer Holdings PLC and DAVITA 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 DAVITA INC 375 are associated (or correlated) with Luxfer Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Luxfer Holdings PLC has no effect on the direction of DAVITA i.e., DAVITA and Luxfer Holdings go up and down completely randomly.
Pair Corralation between DAVITA and Luxfer Holdings
Assuming the 90 days trading horizon DAVITA is expected to generate 24.64 times less return on investment than Luxfer Holdings. But when comparing it to its historical volatility, DAVITA INC 375 is 2.97 times less risky than Luxfer Holdings. It trades about 0.01 of its potential returns per unit of risk. Luxfer Holdings PLC is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 846.00 in Luxfer Holdings PLC on September 12, 2024 and sell it today you would earn a total of 571.00 from holding Luxfer Holdings PLC or generate 67.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.19% |
| Values | Daily Returns |
DAVITA INC 375 vs. Luxfer Holdings PLC
Performance |
| Timeline |
| DAVITA INC 375 |
| Luxfer Holdings PLC |
DAVITA and Luxfer Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DAVITA and Luxfer Holdings
The main advantage of trading using opposite DAVITA and Luxfer Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAVITA position performs unexpectedly, Luxfer Holdings 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 Luxfer Holdings will offset losses from the drop in Luxfer Holdings' long position.| DAVITA vs. Luxfer Holdings PLC | DAVITA vs. Lifevantage | DAVITA vs. Hudson Technologies | DAVITA vs. Codexis |
| Luxfer Holdings vs. Graham | Luxfer Holdings vs. Enerpac Tool Group | Luxfer Holdings vs. Kadant Inc | Luxfer Holdings vs. Omega Flex |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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