Correlation Between Lohakit Metal and Future Park

Can any of the company-specific risk be diversified away by investing in both Lohakit Metal and Future Park 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 Lohakit Metal and Future Park into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Lohakit Metal Public and Future Park Leasehold, you can compare the effects of market volatilities on Lohakit Metal and Future Park 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 Lohakit Metal with a short position of Future Park. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lohakit Metal and Future Park.

Diversification Opportunities for Lohakit Metal and Future Park

0.0

Correlation Coefficient

Lohakit Metal  Future Park

Pay attention - limited upside

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

Pair Corralation between Lohakit Metal and Future Park

Assuming the 90 days trading horizon Lohakit Metal Public is expected to generate 0.04 times more return on investment than Future Park. However, Lohakit Metal Public is 24.12 times less risky than Future Park. It trades about -0.3 of its potential returns per unit of risk. Future Park Leasehold is currently generating about -0.13 per unit of risk. If you would invest  362.00  in Lohakit Metal Public on December 24, 2024 and sell it today you would lose (34.00) from holding Lohakit Metal Public or give up 9.39% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Lohakit Metal Public  vs.  Future Park Leasehold

Lohakit Metal Public

Risk-Adjusted Performance

Very Weak

Over the last 90 days Lohakit Metal Public has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest conflicting performance, the Stock's forward-looking signals remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.

Future Park Leasehold

Risk-Adjusted Performance

Very Weak

Over the last 90 days Future Park Leasehold has generated negative risk-adjusted returns adding no value to investors with long positions. Even with conflicting performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in April 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with Lohakit Metal and Future Park

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

The idea behind Lohakit Metal Public and Future Park Leasehold 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 Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.