Correlation Between Lumia and Vaneck Ucits

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

By analyzing existing cross correlation between Lumia and Vaneck Ucits Etfs, you can compare the effects of market volatilities on Lumia and Vaneck Ucits 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 Vaneck Ucits. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lumia and Vaneck Ucits.

Diversification Opportunities for Lumia and Vaneck Ucits

-0.33

Correlation Coefficient

Lumia  Vaneck Ucits

Very good diversification

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

Pair Corralation between Lumia and Vaneck Ucits

Assuming the 90 days trading horizon Lumia is expected to under-perform the Vaneck Ucits. In addition to that, Lumia is 6.71 times more volatile than Vaneck Ucits Etfs. It trades about -0.25 of its total potential returns per unit of risk. Vaneck Ucits Etfs is currently generating about 0.48 per unit of volatility. If you would invest  3,624  in Vaneck Ucits Etfs on October 26, 2024 and sell it today you would earn a total of  279.00  from holding Vaneck Ucits Etfs or generate 7.7% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	90.48%
Values	Daily Returns

Lumia  vs.  Vaneck Ucits Etfs

Lumia

Risk-Adjusted Performance

9 of 100

OK

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

Vaneck Ucits Etfs

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Vaneck Ucits Etfs are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Vaneck Ucits is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Lumia and Vaneck Ucits

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

The idea behind Lumia and Vaneck Ucits Etfs 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.