Correlation Between LJIM and AXS TSLA

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

By analyzing existing cross correlation between LJIM and AXS TSLA Bear, you can compare the effects of market volatilities on LJIM and AXS TSLA 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 LJIM with a short position of AXS TSLA. Check out your portfolio center. Please also check ongoing floating volatility patterns of LJIM and AXS TSLA.

Diversification Opportunities for LJIM and AXS TSLA

0.0

Correlation Coefficient

LJIM  AXS TSLA

Pay attention - limited upside

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

Pair Corralation between LJIM and AXS TSLA

If you would invest  2,393  in AXS TSLA Bear on December 19, 2024 and sell it today you would earn a total of  4,141  from holding AXS TSLA Bear or generate 173.05% return on investment over 90 days.

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

LJIM  vs.  AXS TSLA Bear

LJIM

Risk-Adjusted Performance

Very Weak

Over the last 90 days LJIM has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy forward indicators, LJIM is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

AXS TSLA Bear

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in AXS TSLA Bear are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. Even with relatively uncertain essential indicators, AXS TSLA reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with LJIM and AXS TSLA

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

The idea behind LJIM and AXS TSLA Bear 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.