Correlation Between Broad Capital and Ladenburg Thalmann

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Can any of the company-specific risk be diversified away by investing in both Broad Capital and Ladenburg Thalmann 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 Broad Capital and Ladenburg Thalmann into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Broad Capital Acquisition and Ladenburg Thalmann Financial, you can compare the effects of market volatilities on Broad Capital and Ladenburg Thalmann 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 Broad Capital with a short position of Ladenburg Thalmann. Check out your portfolio center. Please also check ongoing floating volatility patterns of Broad Capital and Ladenburg Thalmann.

Diversification Opportunities for Broad Capital and Ladenburg Thalmann

-0.38
  Correlation Coefficient

Very good diversification

The 3 months correlation between Broad and Ladenburg is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Broad Capital Acquisition and Ladenburg Thalmann Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ladenburg Thalmann and Broad Capital 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 Broad Capital Acquisition are associated (or correlated) with Ladenburg Thalmann. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ladenburg Thalmann has no effect on the direction of Broad Capital i.e., Broad Capital and Ladenburg Thalmann go up and down completely randomly.

Pair Corralation between Broad Capital and Ladenburg Thalmann

If you would invest  17.00  in Broad Capital Acquisition on September 18, 2024 and sell it today you would earn a total of  0.00  from holding Broad Capital Acquisition or generate 0.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy5.56%
ValuesDaily Returns

Broad Capital Acquisition  vs.  Ladenburg Thalmann Financial

 Performance 
       Timeline  
Broad Capital Acquisition 

Risk-Adjusted Performance

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Weak
 
Strong
OK
Over the last 90 days Broad Capital Acquisition has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively weak fundamental indicators, Broad Capital reported solid returns over the last few months and may actually be approaching a breakup point.
Ladenburg Thalmann 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Ladenburg Thalmann Financial has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Ladenburg Thalmann is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Broad Capital and Ladenburg Thalmann Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Broad Capital and Ladenburg Thalmann

The main advantage of trading using opposite Broad Capital and Ladenburg Thalmann positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Broad Capital position performs unexpectedly, Ladenburg Thalmann 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 Ladenburg Thalmann will offset losses from the drop in Ladenburg Thalmann's long position.
The idea behind Broad Capital Acquisition and Ladenburg Thalmann Financial 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.

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