Correlation Between Lumia and U29195AE1

Can any of the company-specific risk be diversified away by investing in both Lumia and U29195AE1 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 U29195AE1 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Lumia and ENR 4375 31 MAR 29, you can compare the effects of market volatilities on Lumia and U29195AE1 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 U29195AE1. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lumia and U29195AE1.

Diversification Opportunities for Lumia and U29195AE1

0.28

Correlation Coefficient

Lumia  U29195AE1

Modest diversification

The 3 months correlation between Lumia and U29195AE1 is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Lumia and ENR 4375 31 MAR 29 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ENR 4375 31 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 U29195AE1. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ENR 4375 31 has no effect on the direction of Lumia i.e., Lumia and U29195AE1 go up and down completely randomly.

Pair Corralation between Lumia and U29195AE1

Assuming the 90 days trading horizon Lumia is expected to under-perform the U29195AE1. In addition to that, Lumia is 3.83 times more volatile than ENR 4375 31 MAR 29. It trades about -0.18 of its total potential returns per unit of risk. ENR 4375 31 MAR 29 is currently generating about -0.13 per unit of volatility. If you would invest  9,278  in ENR 4375 31 MAR 29 on December 26, 2024 and sell it today you would lose (628.00) from holding ENR 4375 31 MAR 29 or give up 6.77% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	42.86%
Values	Daily Returns

Lumia  vs.  ENR 4375 31 MAR 29

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.

ENR 4375 31

Risk-Adjusted Performance

Very Weak

Over the last 90 days ENR 4375 31 MAR 29 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Bond's basic 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 ENR 4375 31 MAR 29 investors.

Pair Trading with Lumia and U29195AE1

The main advantage of trading using opposite Lumia and U29195AE1 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lumia position performs unexpectedly, U29195AE1 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 U29195AE1 will offset losses from the drop in U29195AE1's long position.

The idea behind Lumia and ENR 4375 31 MAR 29 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.