Correlation Between Freightos Limited and Lakeside Holding
Can any of the company-specific risk be diversified away by investing in both Freightos Limited and Lakeside Holding 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 Freightos Limited and Lakeside Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Freightos Limited Warrants and Lakeside Holding Limited, you can compare the effects of market volatilities on Freightos Limited and Lakeside Holding 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 Freightos Limited with a short position of Lakeside Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Freightos Limited and Lakeside Holding.
Diversification Opportunities for Freightos Limited and Lakeside Holding
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Freightos and Lakeside is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Freightos Limited Warrants and Lakeside Holding Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lakeside Holding and Freightos Limited 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 Freightos Limited Warrants are associated (or correlated) with Lakeside Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lakeside Holding has no effect on the direction of Freightos Limited i.e., Freightos Limited and Lakeside Holding go up and down completely randomly.
Pair Corralation between Freightos Limited and Lakeside Holding
Assuming the 90 days horizon Freightos Limited Warrants is expected to generate 1.38 times more return on investment than Lakeside Holding. However, Freightos Limited is 1.38 times more volatile than Lakeside Holding Limited. It trades about 0.12 of its potential returns per unit of risk. Lakeside Holding Limited is currently generating about -0.18 per unit of risk. If you would invest 15.00 in Freightos Limited Warrants on December 21, 2024 and sell it today you would earn a total of 8.00 from holding Freightos Limited Warrants or generate 53.33% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 95.0% |
Values | Daily Returns |
Freightos Limited Warrants vs. Lakeside Holding Limited
Performance |
Timeline |
Freightos Limited |
Lakeside Holding |
Freightos Limited and Lakeside Holding Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Freightos Limited and Lakeside Holding
The main advantage of trading using opposite Freightos Limited and Lakeside Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Freightos Limited position performs unexpectedly, Lakeside Holding 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 Lakeside Holding will offset losses from the drop in Lakeside Holding's long position.Freightos Limited vs. Morgan Advanced Materials | Freightos Limited vs. Universal Music Group | Freightos Limited vs. Monster Beverage Corp | Freightos Limited vs. Harmony Gold Mining |
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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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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