Correlation Between Logan Ridge and BBVASM

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

By analyzing existing cross correlation between Logan Ridge Finance and BBVASM 1875 18 SEP 25, you can compare the effects of market volatilities on Logan Ridge and BBVASM 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 Logan Ridge with a short position of BBVASM. Check out your portfolio center. Please also check ongoing floating volatility patterns of Logan Ridge and BBVASM.

Diversification Opportunities for Logan Ridge and BBVASM

0.33

Correlation Coefficient

Logan Ridge  BBVASM

Weak diversification

The 3 months correlation between Logan and BBVASM is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Logan Ridge Finance and BBVASM 1875 18 SEP 25 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BBVASM 1875 18 and Logan Ridge 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 Logan Ridge Finance are associated (or correlated) with BBVASM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BBVASM 1875 18 has no effect on the direction of Logan Ridge i.e., Logan Ridge and BBVASM go up and down completely randomly.

Pair Corralation between Logan Ridge and BBVASM

Given the investment horizon of 90 days Logan Ridge Finance is expected to under-perform the BBVASM. In addition to that, Logan Ridge is 4.76 times more volatile than BBVASM 1875 18 SEP 25. It trades about -0.15 of its total potential returns per unit of risk. BBVASM 1875 18 SEP 25 is currently generating about -0.04 per unit of volatility. If you would invest  9,777  in BBVASM 1875 18 SEP 25 on December 25, 2024 and sell it today you would lose (39.00) from holding BBVASM 1875 18 SEP 25 or give up 0.4% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	53.33%
Values	Daily Returns

Logan Ridge Finance  vs.  BBVASM 1875 18 SEP 25

Logan Ridge Finance

Risk-Adjusted Performance

Very Weak

Over the last 90 days Logan Ridge Finance has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's technical and fundamental indicators remain rather sound which may send shares a bit higher in April 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

BBVASM 1875 18

Risk-Adjusted Performance

Very Weak

Over the last 90 days BBVASM 1875 18 SEP 25 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, BBVASM is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Logan Ridge and BBVASM

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

The idea behind Logan Ridge Finance and BBVASM 1875 18 SEP 25 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.