Correlation Between Lhyfe SA and C-Bond Systems

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

By analyzing existing cross correlation between Lhyfe SA and C Bond Systems, you can compare the effects of market volatilities on Lhyfe SA and C-Bond Systems 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 Lhyfe SA with a short position of C-Bond Systems. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lhyfe SA and C-Bond Systems.

Diversification Opportunities for Lhyfe SA and C-Bond Systems

0.0

Correlation Coefficient

Lhyfe SA  C-Bond Systems

Pay attention - limited upside

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

Pair Corralation between Lhyfe SA and C-Bond Systems

If you would invest  0.07  in C Bond Systems on December 26, 2024 and sell it today you would lose (0.01) from holding C Bond Systems or give up 14.29% of portfolio value over 90 days.

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

Lhyfe SA  vs.  C Bond Systems

Lhyfe SA

Risk-Adjusted Performance

Very Weak

Over the last 90 days Lhyfe SA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical and fundamental indicators, Lhyfe SA is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

C Bond Systems

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in C Bond Systems are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile basic indicators, C-Bond Systems unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Lhyfe SA and C-Bond Systems

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

The idea behind Lhyfe SA and C Bond Systems 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.