Correlation Between Videolocity International and Luxfer Holdings
Can any of the company-specific risk be diversified away by investing in both Videolocity International and Luxfer Holdings 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 Videolocity International and Luxfer Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Videolocity International and Luxfer Holdings PLC, you can compare the effects of market volatilities on Videolocity International 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 Videolocity International with a short position of Luxfer Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Videolocity International and Luxfer Holdings.
Diversification Opportunities for Videolocity International and Luxfer Holdings
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Videolocity and Luxfer is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Videolocity International 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 Videolocity International 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 Videolocity International 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 Videolocity International i.e., Videolocity International and Luxfer Holdings go up and down completely randomly.
Pair Corralation between Videolocity International and Luxfer Holdings
If you would invest 1,276 in Luxfer Holdings PLC on August 30, 2024 and sell it today you would earn a total of 204.00 from holding Luxfer Holdings PLC or generate 15.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Videolocity International vs. Luxfer Holdings PLC
Performance |
| Timeline |
| Videolocity International |
| Luxfer Holdings PLC |
Videolocity International and Luxfer Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Videolocity International and Luxfer Holdings
The main advantage of trading using opposite Videolocity International and Luxfer Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Videolocity International 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.| Videolocity International vs. Wialan Technologies | Videolocity International vs. TPT Global Tech | Videolocity International vs. AAP Inc | Videolocity International vs. Impinj Inc |
| Luxfer Holdings vs. Illinois Tool Works | Luxfer Holdings vs. Pentair PLC | Luxfer Holdings vs. Emerson Electric | Luxfer Holdings vs. Smith AO |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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