Correlation Between Luxfer Holdings and Reliv International
Can any of the company-specific risk be diversified away by investing in both Luxfer Holdings and Reliv International 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 Luxfer Holdings and Reliv International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Luxfer Holdings PLC and Reliv International, you can compare the effects of market volatilities on Luxfer Holdings and Reliv International 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 Luxfer Holdings with a short position of Reliv International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Luxfer Holdings and Reliv International.
Diversification Opportunities for Luxfer Holdings and Reliv International
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Luxfer and Reliv is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Luxfer Holdings PLC and Reliv International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Reliv International and Luxfer Holdings 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 Luxfer Holdings PLC are associated (or correlated) with Reliv International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Reliv International has no effect on the direction of Luxfer Holdings i.e., Luxfer Holdings and Reliv International go up and down completely randomly.
Pair Corralation between Luxfer Holdings and Reliv International
If you would invest 865.00 in Luxfer Holdings PLC on September 5, 2024 and sell it today you would earn a total of 598.00 from holding Luxfer Holdings PLC or generate 69.13% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 0.4% |
Values | Daily Returns |
Luxfer Holdings PLC vs. Reliv International
Performance |
Timeline |
Luxfer Holdings PLC |
Reliv International |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Luxfer Holdings and Reliv International Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Luxfer Holdings and Reliv International
The main advantage of trading using opposite Luxfer Holdings and Reliv International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Luxfer Holdings position performs unexpectedly, Reliv International 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 Reliv International will offset losses from the drop in Reliv International's long position.Luxfer Holdings vs. Laser Photonics | Luxfer Holdings vs. Siemens AG Class | Luxfer Holdings vs. ATVRockN | Luxfer Holdings vs. Nuburu Inc |
Reliv International vs. Luxfer Holdings PLC | Reliv International vs. Paysafe | Reliv International vs. CVR Partners LP | Reliv International vs. JBG SMITH Properties |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
Analyst Advice Analyst recommendations and target price estimates broken down by several categories |