Correlation Between Lorillard and Gilla
Can any of the company-specific risk be diversified away by investing in both Lorillard and Gilla 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 Lorillard and Gilla into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lorillard and Gilla Inc, you can compare the effects of market volatilities on Lorillard and Gilla 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 Lorillard with a short position of Gilla. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lorillard and Gilla.
Diversification Opportunities for Lorillard and Gilla
Pay attention - limited upside
The 3 months correlation between Lorillard and Gilla is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Lorillard and Gilla Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gilla Inc and Lorillard 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 Lorillard are associated (or correlated) with Gilla. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gilla Inc has no effect on the direction of Lorillard i.e., Lorillard and Gilla go up and down completely randomly.
Pair Corralation between Lorillard and Gilla
If you would invest (100.00) in Gilla Inc on January 23, 2024 and sell it today you would earn a total of 100.00 from holding Gilla Inc or generate -100.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Lorillard vs. Gilla Inc
Performance |
Timeline |
Lorillard |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Gilla Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Lorillard and Gilla Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Lorillard and Gilla
The main advantage of trading using opposite Lorillard and Gilla positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lorillard position performs unexpectedly, Gilla 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 Gilla will offset losses from the drop in Gilla's long position.Lorillard vs. QRS Music Technologies | Lorillard vs. Tenaris SA ADR | Lorillard vs. Transocean | Lorillard vs. Universal Music Group |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
Money Managers Screen money managers from public funds and ETFs managed around the world | |
Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
Commodity Directory Find actively traded commodities issued by global exchanges | |
AI Investment Finder Use AI to screen and filter profitable investment opportunities | |
Share Portfolio Track or share privately all of your investments from the convenience of any device | |
Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |