Correlation Between 279158AJ8 and Luxfer Holdings
Specify exactly 2 symbols:
By analyzing existing cross correlation between ECOPETROL S A and Luxfer Holdings PLC, you can compare the effects of market volatilities on 279158AJ8 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 279158AJ8 with a short position of Luxfer Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of 279158AJ8 and Luxfer Holdings.
Diversification Opportunities for 279158AJ8 and Luxfer Holdings
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between 279158AJ8 and Luxfer is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding ECOPETROL S A 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 279158AJ8 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 ECOPETROL S A 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 279158AJ8 i.e., 279158AJ8 and Luxfer Holdings go up and down completely randomly.
Pair Corralation between 279158AJ8 and Luxfer Holdings
Assuming the 90 days trading horizon 279158AJ8 is expected to generate 3.19 times less return on investment than Luxfer Holdings. But when comparing it to its historical volatility, ECOPETROL S A is 1.31 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 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,191 in Luxfer Holdings PLC on September 12, 2024 and sell it today you would earn a total of 226.00 from holding Luxfer Holdings PLC or generate 18.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.18% |
| Values | Daily Returns |
ECOPETROL S A vs. Luxfer Holdings PLC
Performance |
| Timeline |
| ECOPETROL S A |
| Luxfer Holdings PLC |
279158AJ8 and Luxfer Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 279158AJ8 and Luxfer Holdings
The main advantage of trading using opposite 279158AJ8 and Luxfer Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 279158AJ8 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.| 279158AJ8 vs. United Airlines Holdings | 279158AJ8 vs. Reservoir Media | 279158AJ8 vs. Proficient Auto Logistics, | 279158AJ8 vs. TFI International |
| 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |