Correlation Between Luxfer Holdings and 466313AL7

Can any of the company-specific risk be diversified away by investing in both Luxfer Holdings and 466313AL7 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 466313AL7 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 JBL 17 15 APR 26, you can compare the effects of market volatilities on Luxfer Holdings and 466313AL7 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 466313AL7. Check out your portfolio center. Please also check ongoing floating volatility patterns of Luxfer Holdings and 466313AL7.

Diversification Opportunities for Luxfer Holdings and 466313AL7

-0.07

Correlation Coefficient

Luxfer Holdings  466313AL7

Good diversification

The 3 months correlation between Luxfer and 466313AL7 is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Luxfer Holdings PLC and JBL 17 15 APR 26 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JBL 17 15 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 466313AL7. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JBL 17 15 has no effect on the direction of Luxfer Holdings i.e., Luxfer Holdings and 466313AL7 go up and down completely randomly.

Pair Corralation between Luxfer Holdings and 466313AL7

Given the investment horizon of 90 days Luxfer Holdings PLC is expected to generate 0.96 times more return on investment than 466313AL7. However, Luxfer Holdings PLC is 1.04 times less risky than 466313AL7. It trades about 0.15 of its potential returns per unit of risk. JBL 17 15 APR 26 is currently generating about -0.02 per unit of risk. If you would invest  1,104  in Luxfer Holdings PLC on September 12, 2024 and sell it today you would earn a total of  313.00  from holding Luxfer Holdings PLC or generate 28.35% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	78.13%
Values	Daily Returns

Luxfer Holdings PLC  vs.  JBL 17 15 APR 26

Luxfer Holdings PLC

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Luxfer Holdings PLC are ranked lower than 11 (%) 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.

JBL 17 15

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days JBL 17 15 APR 26 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, 466313AL7 is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Luxfer Holdings and 466313AL7

The main advantage of trading using opposite Luxfer Holdings and 466313AL7 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Luxfer Holdings position performs unexpectedly, 466313AL7 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 466313AL7 will offset losses from the drop in 466313AL7's long position.

The idea behind Luxfer Holdings PLC and JBL 17 15 APR 26 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.