Correlation Between Lycos Energy and Canaccord Genuity
Can any of the company-specific risk be diversified away by investing in both Lycos Energy and Canaccord Genuity 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 Lycos Energy and Canaccord Genuity into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lycos Energy and Canaccord Genuity Group, you can compare the effects of market volatilities on Lycos Energy and Canaccord Genuity 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 Lycos Energy with a short position of Canaccord Genuity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lycos Energy and Canaccord Genuity.
Diversification Opportunities for Lycos Energy and Canaccord Genuity
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lycos and Canaccord is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Lycos Energy and Canaccord Genuity Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canaccord Genuity and Lycos Energy 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 Lycos Energy are associated (or correlated) with Canaccord Genuity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Canaccord Genuity has no effect on the direction of Lycos Energy i.e., Lycos Energy and Canaccord Genuity go up and down completely randomly.
Pair Corralation between Lycos Energy and Canaccord Genuity
Assuming the 90 days horizon Lycos Energy is expected to generate 22.47 times more return on investment than Canaccord Genuity. However, Lycos Energy is 22.47 times more volatile than Canaccord Genuity Group. It trades about 0.05 of its potential returns per unit of risk. Canaccord Genuity Group is currently generating about 0.01 per unit of risk. If you would invest 440.00 in Lycos Energy on October 4, 2024 and sell it today you would lose (180.00) from holding Lycos Energy or give up 40.91% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 99.8% |
Values | Daily Returns |
Lycos Energy vs. Canaccord Genuity Group
Performance |
Timeline |
Lycos Energy |
Canaccord Genuity |
Lycos Energy and Canaccord Genuity Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Lycos Energy and Canaccord Genuity
The main advantage of trading using opposite Lycos Energy and Canaccord Genuity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lycos Energy position performs unexpectedly, Canaccord Genuity 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 Canaccord Genuity will offset losses from the drop in Canaccord Genuity's long position.Lycos Energy vs. HPQ Silicon Resources | Lycos Energy vs. Richelieu Hardware | Lycos Energy vs. Laurentian Bank | Lycos Energy vs. Firan Technology Group |
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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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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