Correlation Between LLOYDS and United States
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By analyzing existing cross correlation between LLOYDS BKG GROUP and United States Steel, you can compare the effects of market volatilities on LLOYDS and United States 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 LLOYDS with a short position of United States. Check out your portfolio center. Please also check ongoing floating volatility patterns of LLOYDS and United States.
Diversification Opportunities for LLOYDS and United States
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between LLOYDS and United is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding LLOYDS BKG GROUP and United States Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on United States Steel and LLOYDS 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 LLOYDS BKG GROUP are associated (or correlated) with United States. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of United States Steel has no effect on the direction of LLOYDS i.e., LLOYDS and United States go up and down completely randomly.
Pair Corralation between LLOYDS and United States
Assuming the 90 days trading horizon LLOYDS BKG GROUP is expected to generate 27.81 times more return on investment than United States. However, LLOYDS is 27.81 times more volatile than United States Steel. It trades about 0.08 of its potential returns per unit of risk. United States Steel is currently generating about 0.05 per unit of risk. If you would invest 9,387 in LLOYDS BKG GROUP on September 3, 2024 and sell it today you would earn a total of 161.00 from holding LLOYDS BKG GROUP or generate 1.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 81.62% |
| Values | Daily Returns |
LLOYDS BKG GROUP vs. United States Steel
Performance |
| Timeline |
| LLOYDS BKG GROUP |
| United States Steel |
LLOYDS and United States Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LLOYDS and United States
The main advantage of trading using opposite LLOYDS and United States positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LLOYDS position performs unexpectedly, United States 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 United States will offset losses from the drop in United States' long position.| LLOYDS vs. Copa Holdings SA | LLOYDS vs. United States Steel | LLOYDS vs. Sapiens International | LLOYDS vs. Algoma Steel Group |
| United States vs. Nucor Corp | United States vs. Steel Dynamics | United States vs. ArcelorMittal SA ADR | United States vs. Gerdau SA ADR |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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