Correlation Between Luxfer Holdings and EMERA
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By analyzing existing cross correlation between Luxfer Holdings PLC and EMERA FIN LP, you can compare the effects of market volatilities on Luxfer Holdings and EMERA 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 EMERA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Luxfer Holdings and EMERA.
Diversification Opportunities for Luxfer Holdings and EMERA
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Luxfer and EMERA is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Luxfer Holdings PLC and EMERA FIN LP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EMERA FIN LP 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 EMERA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EMERA FIN LP has no effect on the direction of Luxfer Holdings i.e., Luxfer Holdings and EMERA go up and down completely randomly.
Pair Corralation between Luxfer Holdings and EMERA
Given the investment horizon of 90 days Luxfer Holdings PLC is expected to under-perform the EMERA. In addition to that, Luxfer Holdings is 2.12 times more volatile than EMERA FIN LP. It trades about -0.07 of its total potential returns per unit of risk. EMERA FIN LP is currently generating about -0.13 per unit of volatility. If you would invest 8,340 in EMERA FIN LP on December 22, 2024 and sell it today you would lose (673.00) from holding EMERA FIN LP or give up 8.07% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 96.67% |
Values | Daily Returns |
Luxfer Holdings PLC vs. EMERA FIN LP
Performance |
Timeline |
Luxfer Holdings PLC |
EMERA FIN LP |
Luxfer Holdings and EMERA Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Luxfer Holdings and EMERA
The main advantage of trading using opposite Luxfer Holdings and EMERA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Luxfer Holdings position performs unexpectedly, EMERA 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 EMERA will offset losses from the drop in EMERA's long position.Luxfer Holdings vs. Graham | Luxfer Holdings vs. Enerpac Tool Group | Luxfer Holdings vs. Kadant Inc | Luxfer Holdings vs. Omega Flex |
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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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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