Correlation Between VirTra and Lilium Equity
Can any of the company-specific risk be diversified away by investing in both VirTra and Lilium Equity 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 VirTra and Lilium Equity into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VirTra Inc and Lilium Equity Warrants, you can compare the effects of market volatilities on VirTra and Lilium Equity 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 VirTra with a short position of Lilium Equity. Check out your portfolio center. Please also check ongoing floating volatility patterns of VirTra and Lilium Equity.
Diversification Opportunities for VirTra and Lilium Equity
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between VirTra and Lilium is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding VirTra Inc and Lilium Equity Warrants in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lilium Equity Warrants and VirTra 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 VirTra Inc are associated (or correlated) with Lilium Equity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lilium Equity Warrants has no effect on the direction of VirTra i.e., VirTra and Lilium Equity go up and down completely randomly.
Pair Corralation between VirTra and Lilium Equity
Given the investment horizon of 90 days VirTra Inc is expected to generate 0.22 times more return on investment than Lilium Equity. However, VirTra Inc is 4.59 times less risky than Lilium Equity. It trades about 0.1 of its potential returns per unit of risk. Lilium Equity Warrants is currently generating about -0.15 per unit of risk. If you would invest 617.00 in VirTra Inc on August 31, 2024 and sell it today you would earn a total of 144.00 from holding VirTra Inc or generate 23.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 76.19% |
| Values | Daily Returns |
VirTra Inc vs. Lilium Equity Warrants
Performance |
| Timeline |
| VirTra Inc |
| Lilium Equity Warrants |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
VirTra and Lilium Equity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VirTra and Lilium Equity
The main advantage of trading using opposite VirTra and Lilium Equity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VirTra position performs unexpectedly, Lilium Equity 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 Lilium Equity will offset losses from the drop in Lilium Equity's long position.| VirTra vs. Innovative Solutions and | VirTra vs. Park Electrochemical | VirTra vs. Ducommun Incorporated | VirTra vs. National Presto Industries |
| Lilium Equity vs. Joby Aviation | Lilium Equity vs. Lilium NV | Lilium Equity vs. AEye Inc | Lilium Equity vs. Microvast Holdings |
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..
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