Correlation Between Lumen Technologies, and BRB Banco

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

By analyzing existing cross correlation between Lumen Technologies, and BRB Banco de, you can compare the effects of market volatilities on Lumen Technologies, and BRB Banco 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 Lumen Technologies, with a short position of BRB Banco. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lumen Technologies, and BRB Banco.

Diversification Opportunities for Lumen Technologies, and BRB Banco

-0.6

Correlation Coefficient

Lumen Technologies,  BRB Banco

Excellent diversification

The 3 months correlation between Lumen and BRB is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Lumen Technologies, and BRB Banco de in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BRB Banco de and Lumen Technologies, 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 Lumen Technologies, are associated (or correlated) with BRB Banco. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BRB Banco de has no effect on the direction of Lumen Technologies, i.e., Lumen Technologies, and BRB Banco go up and down completely randomly.

Pair Corralation between Lumen Technologies, and BRB Banco

Assuming the 90 days trading horizon Lumen Technologies, is expected to generate 1.5 times more return on investment than BRB Banco. However, Lumen Technologies, is 1.5 times more volatile than BRB Banco de. It trades about 0.14 of its potential returns per unit of risk. BRB Banco de is currently generating about -0.09 per unit of risk. If you would invest  1,831  in Lumen Technologies, on April 20, 2025 and sell it today you would earn a total of  599.00  from holding Lumen Technologies, or generate 32.71% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	98.41%
Values	Daily Returns

Lumen Technologies,  vs.  BRB Banco de

Lumen Technologies,

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Lumen Technologies, are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak primary indicators, Lumen Technologies, sustained solid returns over the last few months and may actually be approaching a breakup point.

BRB Banco de

Risk-Adjusted Performance

Very Weak

Over the last 90 days BRB Banco de has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in August 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Lumen Technologies, and BRB Banco

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

The idea behind Lumen Technologies, and BRB Banco de 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.