Correlation Between Lkcm Small-mid and Real Estate
Can any of the company-specific risk be diversified away by investing in both Lkcm Small-mid and Real Estate 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 Lkcm Small-mid and Real Estate into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lkcm Small Mid Cap and Real Estate Ultrasector, you can compare the effects of market volatilities on Lkcm Small-mid and Real Estate 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 Lkcm Small-mid with a short position of Real Estate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lkcm Small-mid and Real Estate.
Diversification Opportunities for Lkcm Small-mid and Real Estate
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lkcm and Real is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Lkcm Small Mid Cap and Real Estate Ultrasector in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Real Estate Ultrasector and Lkcm Small-mid 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 Lkcm Small Mid Cap are associated (or correlated) with Real Estate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Real Estate Ultrasector has no effect on the direction of Lkcm Small-mid i.e., Lkcm Small-mid and Real Estate go up and down completely randomly.
Pair Corralation between Lkcm Small-mid and Real Estate
Assuming the 90 days horizon Lkcm Small Mid Cap is expected to generate 0.62 times more return on investment than Real Estate. However, Lkcm Small Mid Cap is 1.6 times less risky than Real Estate. It trades about 0.1 of its potential returns per unit of risk. Real Estate Ultrasector is currently generating about 0.05 per unit of risk. If you would invest 874.00 in Lkcm Small Mid Cap on September 9, 2024 and sell it today you would earn a total of 355.00 from holding Lkcm Small Mid Cap or generate 40.62% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Lkcm Small Mid Cap vs. Real Estate Ultrasector
Performance |
Timeline |
Lkcm Small Mid |
Real Estate Ultrasector |
Lkcm Small-mid and Real Estate Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Lkcm Small-mid and Real Estate
The main advantage of trading using opposite Lkcm Small-mid and Real Estate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lkcm Small-mid position performs unexpectedly, Real Estate 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 Real Estate will offset losses from the drop in Real Estate's long position.Lkcm Small-mid vs. Rmb Mendon Financial | Lkcm Small-mid vs. Angel Oak Financial | Lkcm Small-mid vs. Blackrock Financial Institutions | Lkcm Small-mid vs. 1919 Financial Services |
Real Estate vs. Jhancock Real Estate | Real Estate vs. Simt Real Estate | Real Estate vs. Franklin Real Estate | Real Estate vs. Forum Real Estate |
Check out your portfolio center.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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
Share Portfolio Track or share privately all of your investments from the convenience of any device |