Correlation Between LOBO EV and F PD

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

By analyzing existing cross correlation between LOBO EV TECHNOLOGIES and F PD, you can compare the effects of market volatilities on LOBO EV and F PD 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 LOBO EV with a short position of F PD. Check out your portfolio center. Please also check ongoing floating volatility patterns of LOBO EV and F PD.

Diversification Opportunities for LOBO EV and F PD

0.24

Correlation Coefficient

LOBO EV  F PD

Modest diversification

The 3 months correlation between LOBO and F-PD is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding LOBO EV TECHNOLOGIES and F PD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on F PD and LOBO EV 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 LOBO EV TECHNOLOGIES are associated (or correlated) with F PD. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of F PD has no effect on the direction of LOBO EV i.e., LOBO EV and F PD go up and down completely randomly.

Pair Corralation between LOBO EV and F PD

Given the investment horizon of 90 days LOBO EV TECHNOLOGIES is expected to generate 20.09 times more return on investment than F PD. However, LOBO EV is 20.09 times more volatile than F PD. It trades about 0.06 of its potential returns per unit of risk. F PD is currently generating about -0.02 per unit of risk. If you would invest  186.00  in LOBO EV TECHNOLOGIES on September 13, 2024 and sell it today you would earn a total of  24.55  from holding LOBO EV TECHNOLOGIES or generate 13.2% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

LOBO EV TECHNOLOGIES  vs.  F PD

LOBO EV TECHNOLOGIES

Risk-Adjusted Performance

4 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in LOBO EV TECHNOLOGIES are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of very weak fundamental drivers, LOBO EV displayed solid returns over the last few months and may actually be approaching a breakup point.

F PD

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days F PD has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, F PD is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with LOBO EV and F PD

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

The idea behind LOBO EV TECHNOLOGIES and F PD 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.