Correlation Between Lemtech Holdings and X Legend

Can any of the company-specific risk be diversified away by investing in both Lemtech Holdings and X Legend 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 Lemtech Holdings and X Legend into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Lemtech Holdings Co and X Legend Entertainment Co, you can compare the effects of market volatilities on Lemtech Holdings and X Legend 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 Lemtech Holdings with a short position of X Legend. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lemtech Holdings and X Legend.

Diversification Opportunities for Lemtech Holdings and X Legend

-0.24

Correlation Coefficient

Lemtech Holdings  X Legend

Very good diversification

The 3 months correlation between Lemtech and 4994 is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Lemtech Holdings Co and X Legend Entertainment Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on X Legend Entertainment and Lemtech 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 Lemtech Holdings Co are associated (or correlated) with X Legend. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of X Legend Entertainment has no effect on the direction of Lemtech Holdings i.e., Lemtech Holdings and X Legend go up and down completely randomly.

Pair Corralation between Lemtech Holdings and X Legend

If you would invest  10,300  in X Legend Entertainment Co on December 27, 2024 and sell it today you would lose (50.00) from holding X Legend Entertainment Co or give up 0.49% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Lemtech Holdings Co  vs.  X Legend Entertainment Co

Lemtech Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days Lemtech Holdings Co has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of abnormal performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in April 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

X Legend Entertainment

Risk-Adjusted Performance

Weak

Over the last 90 days X Legend Entertainment Co has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, X Legend is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Lemtech Holdings and X Legend

The main advantage of trading using opposite Lemtech Holdings and X Legend positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lemtech Holdings position performs unexpectedly, X Legend 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 X Legend will offset losses from the drop in X Legend's long position.

The idea behind Lemtech Holdings Co and X Legend Entertainment Co 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.

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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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.