Correlation Between Luxfer Holdings and Centene

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

By analyzing existing cross correlation between Luxfer Holdings PLC and Centene 3375 percent, you can compare the effects of market volatilities on Luxfer Holdings and Centene 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 Luxfer Holdings with a short position of Centene. Check out your portfolio center. Please also check ongoing floating volatility patterns of Luxfer Holdings and Centene.

Diversification Opportunities for Luxfer Holdings and Centene

0.03

Correlation Coefficient

Luxfer Holdings  Centene

Significant diversification

The 3 months correlation between Luxfer and Centene is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Luxfer Holdings PLC and Centene 3375 percent in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Centene 3375 percent and Luxfer 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 Luxfer Holdings PLC are associated (or correlated) with Centene. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Centene 3375 percent has no effect on the direction of Luxfer Holdings i.e., Luxfer Holdings and Centene go up and down completely randomly.

Pair Corralation between Luxfer Holdings and Centene

Given the investment horizon of 90 days Luxfer Holdings PLC is expected to under-perform the Centene. In addition to that, Luxfer Holdings is 3.27 times more volatile than Centene 3375 percent. It trades about -0.07 of its total potential returns per unit of risk. Centene 3375 percent is currently generating about -0.1 per unit of volatility. If you would invest  8,877  in Centene 3375 percent on December 23, 2024 and sell it today you would lose (396.00) from holding Centene 3375 percent or give up 4.46% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	95.31%
Values	Daily Returns

Luxfer Holdings PLC  vs.  Centene 3375 percent

Luxfer Holdings PLC

Risk-Adjusted Performance

Very Weak

Over the last 90 days Luxfer Holdings PLC has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest unfluctuating performance, the Stock's technical and fundamental indicators remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the enterprise retail investors.

Centene 3375 percent

Risk-Adjusted Performance

Weak

Over the last 90 days Centene 3375 percent has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Centene is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Luxfer Holdings and Centene

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

The idea behind Luxfer Holdings PLC and Centene 3375 percent 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.