Correlation Between Lipidor Ab and Cinis Fertilizer

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

By analyzing existing cross correlation between Lipidor Ab and Cinis Fertilizer AB, you can compare the effects of market volatilities on Lipidor Ab and Cinis Fertilizer 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 Lipidor Ab with a short position of Cinis Fertilizer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lipidor Ab and Cinis Fertilizer.

Diversification Opportunities for Lipidor Ab and Cinis Fertilizer

0.0

Correlation Coefficient

Lipidor Ab  Cinis Fertilizer

Pay attention - limited upside

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

Pair Corralation between Lipidor Ab and Cinis Fertilizer

If you would invest  15.00  in Lipidor Ab on October 25, 2024 and sell it today you would earn a total of  11.00  from holding Lipidor Ab or generate 73.33% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.72%
Values	Daily Returns

Lipidor Ab  vs.  Cinis Fertilizer AB

Lipidor Ab

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Lipidor Ab are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Lipidor Ab unveiled solid returns over the last few months and may actually be approaching a breakup point.

Cinis Fertilizer

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Cinis Fertilizer AB has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Cinis Fertilizer 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 Lipidor Ab and Cinis Fertilizer

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

The idea behind Lipidor Ab and Cinis Fertilizer AB 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 Commodity Directory module to find actively traded commodities issued by global exchanges.