Correlation Between Zegona Communications and Leggett Platt
Can any of the company-specific risk be diversified away by investing in both Zegona Communications and Leggett Platt 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 Zegona Communications and Leggett Platt into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Zegona Communications Plc and Leggett Platt, you can compare the effects of market volatilities on Zegona Communications and Leggett Platt 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 Zegona Communications with a short position of Leggett Platt. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zegona Communications and Leggett Platt.
Diversification Opportunities for Zegona Communications and Leggett Platt
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Zegona and Leggett is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Zegona Communications Plc and Leggett Platt in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Leggett Platt and Zegona Communications 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 Zegona Communications Plc are associated (or correlated) with Leggett Platt. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Leggett Platt has no effect on the direction of Zegona Communications i.e., Zegona Communications and Leggett Platt go up and down completely randomly.
Pair Corralation between Zegona Communications and Leggett Platt
If you would invest 42,400 in Zegona Communications Plc on November 3, 2024 and sell it today you would earn a total of 4,600 from holding Zegona Communications Plc or generate 10.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.35% |
| Values | Daily Returns |
Zegona Communications Plc vs. Leggett Platt
Performance |
| Timeline |
| Zegona Communications Plc |
| Leggett Platt |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Zegona Communications and Leggett Platt Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zegona Communications and Leggett Platt
The main advantage of trading using opposite Zegona Communications and Leggett Platt positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zegona Communications position performs unexpectedly, Leggett Platt 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 Leggett Platt will offset losses from the drop in Leggett Platt's long position.| Zegona Communications vs. Eastman Chemical Co | Zegona Communications vs. CAP LEASE AVIATION | Zegona Communications vs. First Majestic Silver | Zegona Communications vs. STMicroelectronics NV |
| Leggett Platt vs. Software Circle plc | Leggett Platt vs. Monster Beverage Corp | Leggett Platt vs. Impax Asset Management | Leggett Platt vs. Coor Service Management |
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 Stocks Directory module to find actively traded stocks across global markets.
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