Correlation Between American Picture and Lingerie Fighting

Can any of the company-specific risk be diversified away by investing in both American Picture and Lingerie Fighting 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 American Picture and Lingerie Fighting into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between American Picture House and Lingerie Fighting Championships, you can compare the effects of market volatilities on American Picture and Lingerie Fighting 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 American Picture with a short position of Lingerie Fighting. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Picture and Lingerie Fighting.

Diversification Opportunities for American Picture and Lingerie Fighting

0.34

Correlation Coefficient

American Picture  Lingerie Fighting

Weak diversification

The 3 months correlation between American and Lingerie is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding American Picture House and Lingerie Fighting Championship in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lingerie Fighting and American Picture 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 American Picture House are associated (or correlated) with Lingerie Fighting. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lingerie Fighting has no effect on the direction of American Picture i.e., American Picture and Lingerie Fighting go up and down completely randomly.

Pair Corralation between American Picture and Lingerie Fighting

Given the investment horizon of 90 days American Picture is expected to generate 69.77 times less return on investment than Lingerie Fighting. But when comparing it to its historical volatility, American Picture House is 26.46 times less risky than Lingerie Fighting. It trades about 0.06 of its potential returns per unit of risk. Lingerie Fighting Championships is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest  0.02  in Lingerie Fighting Championships on December 21, 2024 and sell it today you would lose (0.01) from holding Lingerie Fighting Championships or give up 50.0% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.33%
Values	Daily Returns

American Picture House  vs.  Lingerie Fighting Championship

American Picture House

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in American Picture House are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Even with relatively uncertain technical indicators, American Picture reported solid returns over the last few months and may actually be approaching a breakup point.

Lingerie Fighting

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Lingerie Fighting Championships are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating basic indicators, Lingerie Fighting showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with American Picture and Lingerie Fighting

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

The idea behind American Picture House and Lingerie Fighting Championships 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.