Correlation Between Logan Ridge and US Global

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

Diversification Opportunities for Logan Ridge and US Global

LoganGROWDiversified AwayLoganGROWDiversified Away100%
-0.39
  Correlation Coefficient

Very good diversification

The 3 months correlation between Logan and GROW is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Logan Ridge Finance and US Global Investors in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on US Global Investors and Logan Ridge 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 Logan Ridge Finance are associated (or correlated) with US Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of US Global Investors has no effect on the direction of Logan Ridge i.e., Logan Ridge and US Global go up and down completely randomly.

Pair Corralation between Logan Ridge and US Global

Given the investment horizon of 90 days Logan Ridge Finance is expected to generate 0.73 times more return on investment than US Global. However, Logan Ridge Finance is 1.37 times less risky than US Global. It trades about 0.04 of its potential returns per unit of risk. US Global Investors is currently generating about -0.01 per unit of risk. If you would invest  2,019  in Logan Ridge Finance on September 21, 2024 and sell it today you would earn a total of  466.00  from holding Logan Ridge Finance or generate 23.08% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Logan Ridge Finance  vs.  US Global Investors

 Performance 
JavaScript chart by amCharts 3.21.15OctNovDec -50510
JavaScript chart by amCharts 3.21.15LRFC GROW
       Timeline  
Logan Ridge Finance 

Risk-Adjusted Performance

3 of 100

 
Weak
 
Strong
Weak
Compared to the overall equity markets, risk-adjusted returns on investments in Logan Ridge Finance are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound technical and fundamental indicators, Logan Ridge is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.
JavaScript chart by amCharts 3.21.15OctNovDecNovDec2323.52424.52525.526
US Global Investors 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days US Global Investors has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, US Global is not utilizing all of its potentials. The recent stock price fuss, may contribute to near-short-term losses for the sophisticated investors.
JavaScript chart by amCharts 3.21.15OctNovDecNovDec2.42.452.52.55

Logan Ridge and US Global Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-4.1-3.07-2.04-1.01-0.01721.012.073.134.25.26 0.050.100.150.200.25
JavaScript chart by amCharts 3.21.15LRFC GROW
       Returns  

Pair Trading with Logan Ridge and US Global

The main advantage of trading using opposite Logan Ridge and US Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Logan Ridge position performs unexpectedly, US Global 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 US Global will offset losses from the drop in US Global's long position.
The idea behind Logan Ridge Finance and US Global Investors 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.

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