Correlation Between LZG International and Sekur Private

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

By analyzing existing cross correlation between LZG International and Sekur Private Data, you can compare the effects of market volatilities on LZG International and Sekur Private 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 LZG International with a short position of Sekur Private. Check out your portfolio center. Please also check ongoing floating volatility patterns of LZG International and Sekur Private.

Diversification Opportunities for LZG International and Sekur Private

0.24

Correlation Coefficient

LZG International  Sekur Private

Modest diversification

The 3 months correlation between LZG and Sekur is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding LZG International and Sekur Private Data in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sekur Private Data and LZG International 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 LZG International are associated (or correlated) with Sekur Private. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sekur Private Data has no effect on the direction of LZG International i.e., LZG International and Sekur Private go up and down completely randomly.

Pair Corralation between LZG International and Sekur Private

Given the investment horizon of 90 days LZG International is expected to generate 1.1 times less return on investment than Sekur Private. But when comparing it to its historical volatility, LZG International is 1.21 times less risky than Sekur Private. It trades about 0.13 of its potential returns per unit of risk. Sekur Private Data is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest  1.61  in Sekur Private Data on December 28, 2024 and sell it today you would earn a total of  0.79  from holding Sekur Private Data or generate 49.07% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	95.24%
Values	Daily Returns

LZG International  vs.  Sekur Private Data

LZG International

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in LZG International are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite fairly weak technical and fundamental indicators, LZG International demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Sekur Private Data

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Sekur Private Data are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Sekur Private reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with LZG International and Sekur Private

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

The idea behind LZG International and Sekur Private Data 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.