Correlation Between FinVolution and LODESTAR MIN
Can any of the company-specific risk be diversified away by investing in both FinVolution and LODESTAR MIN 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 FinVolution and LODESTAR MIN into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FinVolution Group and LODESTAR MIN, you can compare the effects of market volatilities on FinVolution and LODESTAR MIN 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 FinVolution with a short position of LODESTAR MIN. Check out your portfolio center. Please also check ongoing floating volatility patterns of FinVolution and LODESTAR MIN.
Diversification Opportunities for FinVolution and LODESTAR MIN
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between FinVolution and LODESTAR is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding FinVolution Group and LODESTAR MIN in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LODESTAR MIN and FinVolution 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 FinVolution Group are associated (or correlated) with LODESTAR MIN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LODESTAR MIN has no effect on the direction of FinVolution i.e., FinVolution and LODESTAR MIN go up and down completely randomly.
Pair Corralation between FinVolution and LODESTAR MIN
If you would invest 8.77 in LODESTAR MIN on October 5, 2024 and sell it today you would earn a total of 0.00 from holding LODESTAR MIN or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 85.0% |
Values | Daily Returns |
FinVolution Group vs. LODESTAR MIN
Performance |
Timeline |
FinVolution Group |
LODESTAR MIN |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
FinVolution and LODESTAR MIN Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with FinVolution and LODESTAR MIN
The main advantage of trading using opposite FinVolution and LODESTAR MIN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FinVolution position performs unexpectedly, LODESTAR MIN 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 LODESTAR MIN will offset losses from the drop in LODESTAR MIN's long position.FinVolution vs. 360 Finance | FinVolution vs. Lufax Holding | FinVolution vs. Qudian Inc | FinVolution vs. X Financial Class |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
Share Portfolio Track or share privately all of your investments from the convenience of any device | |
CEOs Directory Screen CEOs from public companies around the world | |
Bonds Directory Find actively traded corporate debentures issued by US companies |