Correlation Between Luxfer Holdings and Nixxy,

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

By analyzing existing cross correlation between Luxfer Holdings PLC and Nixxy, Inc, you can compare the effects of market volatilities on Luxfer Holdings and Nixxy, 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 Luxfer Holdings with a short position of Nixxy,. Check out your portfolio center. Please also check ongoing floating volatility patterns of Luxfer Holdings and Nixxy,.

Diversification Opportunities for Luxfer Holdings and Nixxy,

-0.59

Correlation Coefficient

Luxfer Holdings  Nixxy,

Excellent diversification

The 3 months correlation between Luxfer and Nixxy, is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Luxfer Holdings PLC and Nixxy, Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nixxy, Inc and Luxfer Holdings 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 Luxfer Holdings PLC are associated (or correlated) with Nixxy,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nixxy, Inc has no effect on the direction of Luxfer Holdings i.e., Luxfer Holdings and Nixxy, go up and down completely randomly.

Pair Corralation between Luxfer Holdings and Nixxy,

Given the investment horizon of 90 days Luxfer Holdings is expected to generate 36.0 times less return on investment than Nixxy,. But when comparing it to its historical volatility, Luxfer Holdings PLC is 18.93 times less risky than Nixxy,. It trades about 0.11 of its potential returns per unit of risk. Nixxy, Inc is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest  0.42  in Nixxy, Inc on September 15, 2024 and sell it today you would earn a total of  1.78  from holding Nixxy, Inc or generate 423.81% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	54.69%
Values	Daily Returns

Luxfer Holdings PLC  vs.  Nixxy, Inc

Luxfer Holdings PLC

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Luxfer Holdings PLC are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Even with relatively unfluctuating technical and fundamental indicators, Luxfer Holdings reported solid returns over the last few months and may actually be approaching a breakup point.

Nixxy, Inc

Risk-Adjusted Performance

16 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Nixxy, Inc are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating basic indicators, Nixxy, showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Luxfer Holdings and Nixxy,

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

The idea behind Luxfer Holdings PLC and Nixxy, Inc 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.

Check out your portfolio center.

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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.