Correlation Between LED IBond and C WorldWide

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

By analyzing existing cross correlation between LED iBond International and C WorldWide Stabile, you can compare the effects of market volatilities on LED IBond and C WorldWide 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 LED IBond with a short position of C WorldWide. Check out your portfolio center. Please also check ongoing floating volatility patterns of LED IBond and C WorldWide.

Diversification Opportunities for LED IBond and C WorldWide

0.0

Correlation Coefficient

LED IBond  C WorldWide

Pay attention - limited upside

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

Pair Corralation between LED IBond and C WorldWide

If you would invest  17.00  in LED iBond International on October 4, 2024 and sell it today you would earn a total of  14.00  from holding LED iBond International or generate 82.35% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

LED iBond International  vs.  C WorldWide Stabile

LED iBond International

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in LED iBond International are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of very unsteady fundamental drivers, LED IBond displayed solid returns over the last few months and may actually be approaching a breakup point.

C WorldWide Stabile

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days C WorldWide Stabile has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable forward indicators, C WorldWide is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with LED IBond and C WorldWide

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

The idea behind LED iBond International and C WorldWide Stabile 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .