Correlation Between Lexinfintech Holdings and Pineapple Financial
Can any of the company-specific risk be diversified away by investing in both Lexinfintech Holdings and Pineapple Financial 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 Lexinfintech Holdings and Pineapple Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lexinfintech Holdings and Pineapple Financial, you can compare the effects of market volatilities on Lexinfintech Holdings and Pineapple Financial 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 Lexinfintech Holdings with a short position of Pineapple Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lexinfintech Holdings and Pineapple Financial.
Diversification Opportunities for Lexinfintech Holdings and Pineapple Financial
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Lexinfintech and Pineapple is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Lexinfintech Holdings and Pineapple Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pineapple Financial and Lexinfintech Holdings 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 Lexinfintech Holdings are associated (or correlated) with Pineapple Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pineapple Financial has no effect on the direction of Lexinfintech Holdings i.e., Lexinfintech Holdings and Pineapple Financial go up and down completely randomly.
Pair Corralation between Lexinfintech Holdings and Pineapple Financial
Allowing for the 90-day total investment horizon Lexinfintech Holdings is expected to generate 0.84 times more return on investment than Pineapple Financial. However, Lexinfintech Holdings is 1.19 times less risky than Pineapple Financial. It trades about 0.22 of its potential returns per unit of risk. Pineapple Financial is currently generating about -0.08 per unit of risk. If you would invest 589.00 in Lexinfintech Holdings on December 30, 2024 and sell it today you would earn a total of 522.00 from holding Lexinfintech Holdings or generate 88.62% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Lexinfintech Holdings vs. Pineapple Financial
Performance |
Timeline |
Lexinfintech Holdings |
Pineapple Financial |
Lexinfintech Holdings and Pineapple Financial Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Lexinfintech Holdings and Pineapple Financial
The main advantage of trading using opposite Lexinfintech Holdings and Pineapple Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lexinfintech Holdings position performs unexpectedly, Pineapple Financial 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 Pineapple Financial will offset losses from the drop in Pineapple Financial's long position.Lexinfintech Holdings vs. 360 Finance | Lexinfintech Holdings vs. Atlanticus Holdings | Lexinfintech Holdings vs. Qudian Inc | Lexinfintech Holdings vs. Enova International |
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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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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