Correlation Between Leucadia National and Pax High
Can any of the company-specific risk be diversified away by investing in both Leucadia National and Pax High 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 Leucadia National and Pax High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Leucadia National and Pax High Yield, you can compare the effects of market volatilities on Leucadia National and Pax High 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 Leucadia National with a short position of Pax High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Leucadia National and Pax High.
Diversification Opportunities for Leucadia National and Pax High
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Leucadia and Pax is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Leucadia National and Pax High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pax High Yield and Leucadia National 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 Leucadia National are associated (or correlated) with Pax High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pax High Yield has no effect on the direction of Leucadia National i.e., Leucadia National and Pax High go up and down completely randomly.
Pair Corralation between Leucadia National and Pax High
If you would invest 537.00 in Pax High Yield on January 31, 2024 and sell it today you would earn a total of 50.00 from holding Pax High Yield or generate 9.31% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Leucadia National vs. Pax High Yield
Performance |
Timeline |
Leucadia National |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Pax High Yield |
Leucadia National and Pax High Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Leucadia National and Pax High
The main advantage of trading using opposite Leucadia National and Pax High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Leucadia National position performs unexpectedly, Pax High 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 Pax High will offset losses from the drop in Pax High's long position.Leucadia National vs. NH Foods Ltd | Leucadia National vs. Cincinnati Financial | Leucadia National vs. Siriuspoint | Leucadia National vs. Direct Line Insurance |
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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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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