Correlation Between Lufax Holding and Alta Global

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

By analyzing existing cross correlation between Lufax Holding and Alta Global Group, you can compare the effects of market volatilities on Lufax Holding and Alta Global 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 Lufax Holding with a short position of Alta Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lufax Holding and Alta Global.

Diversification Opportunities for Lufax Holding and Alta Global

-0.8

Correlation Coefficient

Lufax Holding  Alta Global

Pay attention - limited upside

The 3 months correlation between Lufax and Alta is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Lufax Holding and Alta Global Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alta Global Group and Lufax Holding 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 Lufax Holding are associated (or correlated) with Alta Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alta Global Group has no effect on the direction of Lufax Holding i.e., Lufax Holding and Alta Global go up and down completely randomly.

Pair Corralation between Lufax Holding and Alta Global

Allowing for the 90-day total investment horizon Lufax Holding is expected to generate 0.42 times more return on investment than Alta Global. However, Lufax Holding is 2.39 times less risky than Alta Global. It trades about 0.12 of its potential returns per unit of risk. Alta Global Group is currently generating about -0.08 per unit of risk. If you would invest  243.00  in Lufax Holding on December 26, 2024 and sell it today you would earn a total of  64.00  from holding Lufax Holding or generate 26.34% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Lufax Holding  vs.  Alta Global Group

Lufax Holding

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Lufax Holding are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unfluctuating basic indicators, Lufax Holding unveiled solid returns over the last few months and may actually be approaching a breakup point.

Alta Global Group

Risk-Adjusted Performance

Very Weak

Over the last 90 days Alta Global Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite inconsistent performance in the last few months, the Stock's primary indicators remain somewhat strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Lufax Holding and Alta Global

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

The idea behind Lufax Holding and Alta Global Group 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 Commodity Directory module to find actively traded commodities issued by global exchanges.