Correlation Between Litecoin and Bmo Target

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

By analyzing existing cross correlation between Litecoin and Bmo Target Retirement, you can compare the effects of market volatilities on Litecoin and Bmo Target 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 Litecoin with a short position of Bmo Target. Check out your portfolio center. Please also check ongoing floating volatility patterns of Litecoin and Bmo Target.

Diversification Opportunities for Litecoin and Bmo Target

0.0

Correlation Coefficient

Litecoin  Bmo Target

Pay attention - limited upside

The 3 months correlation between Litecoin and Bmo is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Litecoin and Bmo Target Retirement in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bmo Target Retirement and Litecoin 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 Litecoin are associated (or correlated) with Bmo Target. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bmo Target Retirement has no effect on the direction of Litecoin i.e., Litecoin and Bmo Target go up and down completely randomly.

Pair Corralation between Litecoin and Bmo Target

If you would invest  6,983  in Litecoin on February 14, 2024 and sell it today you would earn a total of  890.00  from holding Litecoin or generate 12.75% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Litecoin  vs.  Bmo Target Retirement

Litecoin

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Litecoin are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady fundamental indicators, Litecoin exhibited solid returns over the last few months and may actually be approaching a breakup point.

Bmo Target Retirement

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Bmo Target Retirement has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Bmo Target is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Litecoin and Bmo Target

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

The idea behind Litecoin and Bmo Target Retirement 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.