Correlation Between Wirecard and LifeSpeak
Can any of the company-specific risk be diversified away by investing in both Wirecard and LifeSpeak 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 Wirecard and LifeSpeak into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wirecard AG and LifeSpeak, you can compare the effects of market volatilities on Wirecard and LifeSpeak 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 Wirecard with a short position of LifeSpeak. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wirecard and LifeSpeak.
Diversification Opportunities for Wirecard and LifeSpeak
Very good diversification
The 3 months correlation between Wirecard and LifeSpeak is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Wirecard AG and LifeSpeak in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LifeSpeak and Wirecard 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 Wirecard AG are associated (or correlated) with LifeSpeak. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LifeSpeak has no effect on the direction of Wirecard i.e., Wirecard and LifeSpeak go up and down completely randomly.
Pair Corralation between Wirecard and LifeSpeak
If you would invest 27.00 in LifeSpeak on September 24, 2024 and sell it today you would earn a total of 2.00 from holding LifeSpeak or generate 7.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wirecard AG vs. LifeSpeak
Performance |
| Timeline |
| Wirecard AG |
| LifeSpeak |
Wirecard and LifeSpeak Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wirecard and LifeSpeak
The main advantage of trading using opposite Wirecard and LifeSpeak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wirecard position performs unexpectedly, LifeSpeak 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 LifeSpeak will offset losses from the drop in LifeSpeak's long position.| Wirecard vs. NextPlat Corp | Wirecard vs. Liquid Avatar Technologies | Wirecard vs. Waldencast Acquisition Corp | Wirecard vs. CXApp Inc |
| LifeSpeak vs. NextPlat Corp | LifeSpeak vs. Liquid Avatar Technologies | LifeSpeak vs. Wirecard AG | LifeSpeak vs. Waldencast Acquisition Corp |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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