Correlation Between Falcon Focus and Lsv Global

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

By analyzing existing cross correlation between Falcon Focus Scv and Lsv Global Managed, you can compare the effects of market volatilities on Falcon Focus and Lsv Global 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 Falcon Focus with a short position of Lsv Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Falcon Focus and Lsv Global.

Diversification Opportunities for Falcon Focus and Lsv Global

0.0

Correlation Coefficient

Falcon Focus  Lsv Global

Pay attention - limited upside

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

Pair Corralation between Falcon Focus and Lsv Global

If you would invest  1,315  in Falcon Focus Scv on October 20, 2024 and sell it today you would earn a total of  0.00  from holding Falcon Focus Scv or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	66.13%
Values	Daily Returns

Falcon Focus Scv  vs.  Lsv Global Managed

Falcon Focus Scv

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Falcon Focus Scv has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong fundamental indicators, Falcon Focus is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Lsv Global Managed

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Lsv Global Managed has generated negative risk-adjusted returns adding no value to fund investors. In spite of weak performance in the last few months, the Fund's technical and fundamental indicators remain fairly strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for the fund investors.

Pair Trading with Falcon Focus and Lsv Global

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

The idea behind Falcon Focus Scv and Lsv Global Managed 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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.