Correlation Between Lumen Technologies, and TC Traders

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

By analyzing existing cross correlation between Lumen Technologies, and TC Traders Club, you can compare the effects of market volatilities on Lumen Technologies, and TC Traders 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 TC Traders. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lumen Technologies, and TC Traders.

Diversification Opportunities for Lumen Technologies, and TC Traders

0.0

Correlation Coefficient

Lumen Technologies,  TC Traders

Pay attention - limited upside

The 3 months correlation between Lumen and TRAD3 is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Lumen Technologies, and TC Traders Club in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TC Traders Club 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 TC Traders. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TC Traders Club has no effect on the direction of Lumen Technologies, i.e., Lumen Technologies, and TC Traders go up and down completely randomly.

Pair Corralation between Lumen Technologies, and TC Traders

Assuming the 90 days trading horizon Lumen Technologies, is expected to generate 0.83 times more return on investment than TC Traders. However, Lumen Technologies, is 1.21 times less risky than TC Traders. It trades about 0.12 of its potential returns per unit of risk. TC Traders Club is currently generating about 0.04 per unit of risk. If you would invest  1,871  in Lumen Technologies, on April 23, 2025 and sell it today you would earn a total of  523.00  from holding Lumen Technologies, or generate 27.95% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Lumen Technologies,  vs.  TC Traders Club

Lumen Technologies,

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Lumen Technologies, are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite somewhat uncertain primary indicators, Lumen Technologies, sustained solid returns over the last few months and may actually be approaching a breakup point.

TC Traders Club

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in TC Traders Club are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, TC Traders unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Lumen Technologies, and TC Traders

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

The idea behind Lumen Technologies, and TC Traders Club 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.

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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.