Correlation Between Lingerie Fighting and Roku

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

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

Diversification Opportunities for Lingerie Fighting and Roku

0.5

Correlation Coefficient

Lingerie Fighting  Roku

Very weak diversification

The 3 months correlation between Lingerie and Roku is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Lingerie Fighting Championship and Roku Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Roku Inc and Lingerie Fighting 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 Lingerie Fighting Championships are associated (or correlated) with Roku. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Roku Inc has no effect on the direction of Lingerie Fighting i.e., Lingerie Fighting and Roku go up and down completely randomly.

Pair Corralation between Lingerie Fighting and Roku

Given the investment horizon of 90 days Lingerie Fighting Championships is not expected to generate positive returns. Moreover, Lingerie Fighting is 7.65 times more volatile than Roku Inc. It trades away all of its potential returns to assume current level of volatility. Roku Inc is currently generating about -0.05 per unit of risk. If you would invest  0.03  in Lingerie Fighting Championships on October 20, 2024 and sell it today you would lose (0.01) from holding Lingerie Fighting Championships or give up 33.33% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	95.0%
Values	Daily Returns

Lingerie Fighting Championship  vs.  Roku Inc

Lingerie Fighting

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Lingerie Fighting Championships are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Lingerie Fighting showed solid returns over the last few months and may actually be approaching a breakup point.

Roku Inc

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Roku Inc are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable forward-looking signals, Roku is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Lingerie Fighting and Roku

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

The idea behind Lingerie Fighting Championships and Roku Inc 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.