Correlation Between Lumia and Oaktree (lux)

Can any of the company-specific risk be diversified away by investing in both Lumia and Oaktree (lux) 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 Lumia and Oaktree (lux) into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Lumia and Oaktree Iii , you can compare the effects of market volatilities on Lumia and Oaktree (lux) 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 Lumia with a short position of Oaktree (lux). Check out your portfolio center. Please also check ongoing floating volatility patterns of Lumia and Oaktree (lux).

Diversification Opportunities for Lumia and Oaktree (lux)

-0.96

Correlation Coefficient

Lumia  Oaktree (lux)

Pay attention - limited upside

The 3 months correlation between Lumia and Oaktree is -0.96. Overlapping area represents the amount of risk that can be diversified away by holding Lumia and Oaktree Iii in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oaktree (lux) and Lumia 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 Lumia are associated (or correlated) with Oaktree (lux). Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oaktree (lux) has no effect on the direction of Lumia i.e., Lumia and Oaktree (lux) go up and down completely randomly.

Pair Corralation between Lumia and Oaktree (lux)

Assuming the 90 days trading horizon Lumia is expected to under-perform the Oaktree (lux). In addition to that, Lumia is 82.93 times more volatile than Oaktree Iii . It trades about -0.2 of its total potential returns per unit of risk. Oaktree Iii is currently generating about 0.28 per unit of volatility. If you would invest  13,501  in Oaktree Iii on December 24, 2024 and sell it today you would earn a total of  198.00  from holding Oaktree Iii or generate 1.47% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	92.19%
Values	Daily Returns

Lumia  vs.  Oaktree Iii

Lumia

Risk-Adjusted Performance

Very Weak

Over the last 90 days Lumia has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Crypto's 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 Lumia shareholders.

Oaktree (lux)

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Oaktree Iii are ranked lower than 21 (%) of all funds and portfolios of funds over the last 90 days. Despite nearly stable basic indicators, Oaktree (lux) is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Lumia and Oaktree (lux)

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

The idea behind Lumia and Oaktree Iii 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.