Correlation Between Xilam Animation and Lumibird
Can any of the company-specific risk be diversified away by investing in both Xilam Animation and Lumibird 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 Xilam Animation and Lumibird into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xilam Animation and Lumibird SA, you can compare the effects of market volatilities on Xilam Animation and Lumibird 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 Xilam Animation with a short position of Lumibird. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xilam Animation and Lumibird.
Diversification Opportunities for Xilam Animation and Lumibird
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Xilam and Lumibird is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Xilam Animation and Lumibird SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lumibird SA and Xilam Animation 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 Xilam Animation are associated (or correlated) with Lumibird. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lumibird SA has no effect on the direction of Xilam Animation i.e., Xilam Animation and Lumibird go up and down completely randomly.
Pair Corralation between Xilam Animation and Lumibird
Assuming the 90 days trading horizon Xilam Animation is expected to under-perform the Lumibird. In addition to that, Xilam Animation is 1.53 times more volatile than Lumibird SA. It trades about -0.08 of its total potential returns per unit of risk. Lumibird SA is currently generating about -0.03 per unit of volatility. If you would invest 1,550 in Lumibird SA on September 1, 2024 and sell it today you would lose (620.00) from holding Lumibird SA or give up 40.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xilam Animation vs. Lumibird SA
Performance |
| Timeline |
| Xilam Animation |
| Lumibird SA |
Xilam Animation and Lumibird Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xilam Animation and Lumibird
The main advantage of trading using opposite Xilam Animation and Lumibird positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xilam Animation position performs unexpectedly, Lumibird 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 Lumibird will offset losses from the drop in Lumibird's long position.| Xilam Animation vs. BigBen Interactive | Xilam Animation vs. Trigano SA | Xilam Animation vs. Lumibird SA | Xilam Animation vs. Chargeurs SA |
| Lumibird vs. Esker SA | Lumibird vs. Xilam Animation | Lumibird vs. Claranova SE | Lumibird vs. Prodways Group SA |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |