Correlation Between Proficient Auto and LOBO EV

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

By analyzing existing cross correlation between Proficient Auto Logistics, and LOBO EV TECHNOLOGIES, you can compare the effects of market volatilities on Proficient Auto and LOBO EV 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 Proficient Auto with a short position of LOBO EV. Check out your portfolio center. Please also check ongoing floating volatility patterns of Proficient Auto and LOBO EV.

Diversification Opportunities for Proficient Auto and LOBO EV

0.02

Correlation Coefficient

Proficient Auto  LOBO EV

Significant diversification

The 3 months correlation between Proficient and LOBO is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Proficient Auto Logistics, and LOBO EV TECHNOLOGIES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LOBO EV TECHNOLOGIES and Proficient Auto 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 Proficient Auto Logistics, are associated (or correlated) with LOBO EV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LOBO EV TECHNOLOGIES has no effect on the direction of Proficient Auto i.e., Proficient Auto and LOBO EV go up and down completely randomly.

Pair Corralation between Proficient Auto and LOBO EV

Considering the 90-day investment horizon Proficient Auto Logistics, is expected to generate 0.59 times more return on investment than LOBO EV. However, Proficient Auto Logistics, is 1.69 times less risky than LOBO EV. It trades about 0.13 of its potential returns per unit of risk. LOBO EV TECHNOLOGIES is currently generating about -0.14 per unit of risk. If you would invest  836.00  in Proficient Auto Logistics, on October 25, 2024 and sell it today you would earn a total of  204.00  from holding Proficient Auto Logistics, or generate 24.4% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Proficient Auto Logistics,  vs.  LOBO EV TECHNOLOGIES

Proficient Auto Logi

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Proficient Auto Logistics, are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite quite uncertain basic indicators, Proficient Auto disclosed solid returns over the last few months and may actually be approaching a breakup point.

LOBO EV TECHNOLOGIES

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days LOBO EV TECHNOLOGIES has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's fundamental drivers remain very healthy which may send shares a bit higher in February 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Proficient Auto and LOBO EV

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

The idea behind Proficient Auto Logistics, and LOBO EV TECHNOLOGIES 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.