Correlation Between TINC Comm and LUMI GRUPPEN

Can any of the company-specific risk be diversified away by investing in both TINC Comm and LUMI GRUPPEN 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 TINC Comm and LUMI GRUPPEN into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between TINC Comm VA and LUMI GRUPPEN AS, you can compare the effects of market volatilities on TINC Comm and LUMI GRUPPEN 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 TINC Comm with a short position of LUMI GRUPPEN. Check out your portfolio center. Please also check ongoing floating volatility patterns of TINC Comm and LUMI GRUPPEN.

Diversification Opportunities for TINC Comm and LUMI GRUPPEN

0.0

Correlation Coefficient

TINC Comm  LUMI GRUPPEN

Pay attention - limited upside

The 3 months correlation between TINC and LUMI is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding TINC Comm VA and LUMI GRUPPEN AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LUMI GRUPPEN AS and TINC Comm 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 TINC Comm VA are associated (or correlated) with LUMI GRUPPEN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LUMI GRUPPEN AS has no effect on the direction of TINC Comm i.e., TINC Comm and LUMI GRUPPEN go up and down completely randomly.

Pair Corralation between TINC Comm and LUMI GRUPPEN

If you would invest  1,086  in TINC Comm VA on October 5, 2024 and sell it today you would earn a total of  2.00  from holding TINC Comm VA or generate 0.18% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	5.88%
Values	Daily Returns

TINC Comm VA  vs.  LUMI GRUPPEN AS

TINC Comm VA

Risk-Adjusted Performance

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Very Weak

Over the last 90 days TINC Comm VA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest unsteady performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

LUMI GRUPPEN AS

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days LUMI GRUPPEN AS has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, LUMI GRUPPEN is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with TINC Comm and LUMI GRUPPEN

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

The idea behind TINC Comm VA and LUMI GRUPPEN AS 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.