Correlation Between FT Cboe and LiCycle Holdings
Can any of the company-specific risk be diversified away by investing in both FT Cboe and LiCycle 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 FT Cboe and LiCycle Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FT Cboe Vest and LiCycle Holdings Corp, you can compare the effects of market volatilities on FT Cboe and LiCycle 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 FT Cboe with a short position of LiCycle Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of FT Cboe and LiCycle Holdings.
Diversification Opportunities for FT Cboe and LiCycle Holdings
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between XNOV and LiCycle is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding FT Cboe Vest and LiCycle Holdings Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LiCycle Holdings Corp and FT Cboe 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 FT Cboe Vest are associated (or correlated) with LiCycle Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LiCycle Holdings Corp has no effect on the direction of FT Cboe i.e., FT Cboe and LiCycle Holdings go up and down completely randomly.
Pair Corralation between FT Cboe and LiCycle Holdings
Given the investment horizon of 90 days FT Cboe Vest is expected to generate 0.01 times more return on investment than LiCycle Holdings. However, FT Cboe Vest is 103.97 times less risky than LiCycle Holdings. It trades about 0.61 of its potential returns per unit of risk. LiCycle Holdings Corp is currently generating about -0.01 per unit of risk. If you would invest 3,378 in FT Cboe Vest on September 1, 2024 and sell it today you would earn a total of 53.00 from holding FT Cboe Vest or generate 1.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
FT Cboe Vest vs. LiCycle Holdings Corp
Performance |
| Timeline |
| FT Cboe Vest |
| LiCycle Holdings Corp |
FT Cboe and LiCycle Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FT Cboe and LiCycle Holdings
The main advantage of trading using opposite FT Cboe and LiCycle Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FT Cboe position performs unexpectedly, LiCycle 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 LiCycle Holdings will offset losses from the drop in LiCycle Holdings' long position.| FT Cboe vs. Innovator ETFs Trust | FT Cboe vs. First Trust Cboe | FT Cboe vs. Innovator SP 500 | FT Cboe vs. Innovator Equity Power |
| LiCycle Holdings vs. Casella Waste Systems | LiCycle Holdings vs. Perma Fix Environmental Svcs | LiCycle Holdings vs. Montrose Environmental Grp | LiCycle Holdings vs. LanzaTech Global |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |