Correlation Between Liechtensteinische and 80 Mile

Can any of the company-specific risk be diversified away by investing in both Liechtensteinische and 80 Mile 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 Liechtensteinische and 80 Mile into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Liechtensteinische Landesbank AG and 80 Mile Plc, you can compare the effects of market volatilities on Liechtensteinische and 80 Mile 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 Liechtensteinische with a short position of 80 Mile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Liechtensteinische and 80 Mile.

Diversification Opportunities for Liechtensteinische and 80 Mile

-0.52

Correlation Coefficient

Liechtensteinische  80 Mile

Excellent diversification

The 3 months correlation between Liechtensteinische and 80M is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Liechtensteinische Landesbank and 80 Mile Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 80 Mile Plc and Liechtensteinische 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 Liechtensteinische Landesbank AG are associated (or correlated) with 80 Mile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 80 Mile Plc has no effect on the direction of Liechtensteinische i.e., Liechtensteinische and 80 Mile go up and down completely randomly.

Pair Corralation between Liechtensteinische and 80 Mile

Assuming the 90 days trading horizon Liechtensteinische Landesbank AG is expected to generate 0.28 times more return on investment than 80 Mile. However, Liechtensteinische Landesbank AG is 3.54 times less risky than 80 Mile. It trades about 0.25 of its potential returns per unit of risk. 80 Mile Plc is currently generating about -0.04 per unit of risk. If you would invest  7,515  in Liechtensteinische Landesbank AG on April 25, 2025 and sell it today you would earn a total of  1,155  from holding Liechtensteinische Landesbank AG or generate 15.37% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	96.88%
Values	Daily Returns

Liechtensteinische Landesbank   vs.  80 Mile Plc

Liechtensteinische

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Liechtensteinische Landesbank AG are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, Liechtensteinische unveiled solid returns over the last few months and may actually be approaching a breakup point.

80 Mile Plc

Risk-Adjusted Performance

Very Weak

Over the last 90 days 80 Mile Plc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's technical and fundamental indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Pair Trading with Liechtensteinische and 80 Mile

The main advantage of trading using opposite Liechtensteinische and 80 Mile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Liechtensteinische position performs unexpectedly, 80 Mile 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 80 Mile will offset losses from the drop in 80 Mile's long position.

The idea behind Liechtensteinische Landesbank AG and 80 Mile Plc 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.