Correlation Between Nokia and Life Time

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

By analyzing existing cross correlation between Nokia 6625 percent and Life Time Group, you can compare the effects of market volatilities on Nokia and Life Time 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 Nokia with a short position of Life Time. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nokia and Life Time.

Diversification Opportunities for Nokia and Life Time

-0.05

Correlation Coefficient

Nokia  Life Time

Good diversification

The 3 months correlation between Nokia and Life is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Nokia 6625 percent and Life Time Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Life Time Group and Nokia 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 Nokia 6625 percent are associated (or correlated) with Life Time. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Life Time Group has no effect on the direction of Nokia i.e., Nokia and Life Time go up and down completely randomly.

Pair Corralation between Nokia and Life Time

Assuming the 90 days trading horizon Nokia 6625 percent is expected to under-perform the Life Time. But the bond apears to be less risky and, when comparing its historical volatility, Nokia 6625 percent is 2.19 times less risky than Life Time. The bond trades about -0.1 of its potential returns per unit of risk. The Life Time Group is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest  2,108  in Life Time Group on October 21, 2024 and sell it today you would earn a total of  659.00  from holding Life Time Group or generate 31.26% return on investment over 90 days.

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

Nokia 6625 percent  vs.  Life Time Group

Nokia 6625 percent

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Nokia 6625 percent has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unfluctuating performance in the last few months, the Bond's basic indicators remain somewhat strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for Nokia 6625 percent investors.

Life Time Group

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Life Time Group are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite fairly abnormal basic indicators, Life Time may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Nokia and Life Time

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

The idea behind Nokia 6625 percent and Life Time Group 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.