Correlation Between Lilium Equity and Moog

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

By analyzing existing cross correlation between Lilium Equity Warrants and Moog Inc, you can compare the effects of market volatilities on Lilium Equity and Moog 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 Lilium Equity with a short position of Moog. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lilium Equity and Moog.

Diversification Opportunities for Lilium Equity and Moog

0.0

Correlation Coefficient

Lilium Equity  Moog

Pay attention - limited upside

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

Pair Corralation between Lilium Equity and Moog

If you would invest (100.00) in Lilium Equity Warrants on December 28, 2024 and sell it today you would earn a total of  100.00  from holding Lilium Equity Warrants or generate -100.0% return on investment over 90 days.

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

Lilium Equity Warrants  vs.  Moog Inc

Lilium Equity Warrants

Risk-Adjusted Performance

Very Weak

Over the last 90 days Lilium Equity Warrants has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable primary indicators, Lilium Equity is not utilizing all of its potentials. The newest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Moog Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Moog Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Pair Trading with Lilium Equity and Moog

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

The idea behind Lilium Equity Warrants and Moog Inc 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.