Correlation Between Lucid and 126307AY3
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By analyzing existing cross correlation between Lucid Group and CSC Holdings 75, you can compare the effects of market volatilities on Lucid and 126307AY3 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 Lucid with a short position of 126307AY3. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lucid and 126307AY3.
Diversification Opportunities for Lucid and 126307AY3
Very good diversification
The 3 months correlation between Lucid and 126307AY3 is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Lucid Group and CSC Holdings 75 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CSC Holdings 75 and Lucid 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 Lucid Group are associated (or correlated) with 126307AY3. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CSC Holdings 75 has no effect on the direction of Lucid i.e., Lucid and 126307AY3 go up and down completely randomly.
Pair Corralation between Lucid and 126307AY3
Given the investment horizon of 90 days Lucid Group is expected to under-perform the 126307AY3. But the stock apears to be less risky and, when comparing its historical volatility, Lucid Group is 1.17 times less risky than 126307AY3. The stock trades about -0.04 of its potential returns per unit of risk. The CSC Holdings 75 is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 6,649 in CSC Holdings 75 on September 6, 2024 and sell it today you would lose (254.00) from holding CSC Holdings 75 or give up 3.82% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 89.16% |
Values | Daily Returns |
Lucid Group vs. CSC Holdings 75
Performance |
Timeline |
Lucid Group |
CSC Holdings 75 |
Lucid and 126307AY3 Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Lucid and 126307AY3
The main advantage of trading using opposite Lucid and 126307AY3 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lucid position performs unexpectedly, 126307AY3 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 126307AY3 will offset losses from the drop in 126307AY3's long position.The idea behind Lucid Group and CSC Holdings 75 pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.126307AY3 vs. Viemed Healthcare | 126307AY3 vs. Cumberland Pharmaceuticals | 126307AY3 vs. Pekin Life Insurance | 126307AY3 vs. Transocean |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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