Correlation Between Lumine and Amotiv

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Lumine and Amotiv 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 Lumine and Amotiv into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lumine Group and Amotiv Limited, you can compare the effects of market volatilities on Lumine and Amotiv 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 Lumine with a short position of Amotiv. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lumine and Amotiv.

Diversification Opportunities for Lumine and Amotiv

LumineAmotivDiversified AwayLumineAmotivDiversified Away100%
-0.72
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Lumine and Amotiv is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Lumine Group and Amotiv Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amotiv Limited and Lumine 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 Lumine Group are associated (or correlated) with Amotiv. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amotiv Limited has no effect on the direction of Lumine i.e., Lumine and Amotiv go up and down completely randomly.

Pair Corralation between Lumine and Amotiv

Assuming the 90 days horizon Lumine Group is expected to generate 1.43 times more return on investment than Amotiv. However, Lumine is 1.43 times more volatile than Amotiv Limited. It trades about 0.13 of its potential returns per unit of risk. Amotiv Limited is currently generating about 0.01 per unit of risk. If you would invest  3,226  in Lumine Group on October 26, 2024 and sell it today you would earn a total of  674.00  from holding Lumine Group or generate 20.89% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Lumine Group  vs.  Amotiv Limited

 Performance 
JavaScript chart by amCharts 3.21.15NovDec2025 -100102030
JavaScript chart by amCharts 3.21.15LMN AOV
       Timeline  
Lumine Group 

Risk-Adjusted Performance

10 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Lumine Group are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Lumine showed solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan3234363840424446
Amotiv Limited 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Amotiv Limited has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Amotiv is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan5.15.25.35.45.55.65.75.8

Lumine and Amotiv Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-7.96-5.96-3.96-1.960.02.114.226.338.44 0.020.040.060.080.100.12
JavaScript chart by amCharts 3.21.15LMN AOV
       Returns  

Pair Trading with Lumine and Amotiv

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

AI Portfolio Architect
Use AI to generate optimal portfolios and find profitable investment opportunities
Financial Widgets
Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets
Positions Ratings
Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance
Pattern Recognition
Use different Pattern Recognition models to time the market across multiple global exchanges
My Watchlist Analysis
Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like