Correlation Between SQ Old and Lucas GC

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

By analyzing existing cross correlation between SQ Old and Lucas GC Limited, you can compare the effects of market volatilities on SQ Old and Lucas GC 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 SQ Old with a short position of Lucas GC. Check out your portfolio center. Please also check ongoing floating volatility patterns of SQ Old and Lucas GC.

Diversification Opportunities for SQ Old and Lucas GC

0.0

Correlation Coefficient

SQ Old  Lucas GC

Pay attention - limited upside

The 3 months correlation between SQ Old and Lucas is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SQ Old and Lucas GC Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lucas GC Limited and SQ Old 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 SQ Old are associated (or correlated) with Lucas GC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lucas GC Limited has no effect on the direction of SQ Old i.e., SQ Old and Lucas GC go up and down completely randomly.

Pair Corralation between SQ Old and Lucas GC

If you would invest  58.00  in Lucas GC Limited on December 27, 2024 and sell it today you would lose (3.00) from holding Lucas GC Limited or give up 5.17% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

SQ Old  vs.  Lucas GC Limited

SQ Old

Risk-Adjusted Performance

Very Weak

Over the last 90 days SQ Old has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, SQ Old is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Lucas GC Limited

Risk-Adjusted Performance

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Lucas GC Limited are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite quite uncertain fundamental indicators, Lucas GC may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with SQ Old and Lucas GC

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

The idea behind SQ Old and Lucas GC Limited 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.