Correlation Between LL Lucky and Gentoo Media

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

By analyzing existing cross correlation between LL Lucky Games and Gentoo Media, you can compare the effects of market volatilities on LL Lucky and Gentoo Media 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 LL Lucky with a short position of Gentoo Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of LL Lucky and Gentoo Media.

Diversification Opportunities for LL Lucky and Gentoo Media

-0.07

Correlation Coefficient

LL Lucky  Gentoo Media

Good diversification

The 3 months correlation between LADYLU and Gentoo is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding LL Lucky Games and Gentoo Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gentoo Media and LL Lucky 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 LL Lucky Games are associated (or correlated) with Gentoo Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gentoo Media has no effect on the direction of LL Lucky i.e., LL Lucky and Gentoo Media go up and down completely randomly.

Pair Corralation between LL Lucky and Gentoo Media

Assuming the 90 days trading horizon LL Lucky Games is expected to generate 1.22 times more return on investment than Gentoo Media. However, LL Lucky is 1.22 times more volatile than Gentoo Media. It trades about -0.01 of its potential returns per unit of risk. Gentoo Media is currently generating about -0.14 per unit of risk. If you would invest  48.00  in LL Lucky Games on April 24, 2025 and sell it today you would lose (5.00) from holding LL Lucky Games or give up 10.42% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.36%
Values	Daily Returns

LL Lucky Games  vs.  Gentoo Media

LL Lucky Games

Risk-Adjusted Performance

Very Weak

Over the last 90 days LL Lucky Games has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong fundamental indicators, LL Lucky is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Gentoo Media

Risk-Adjusted Performance

Very Weak

Over the last 90 days Gentoo Media 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 primary 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 LL Lucky and Gentoo Media

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

The idea behind LL Lucky Games and Gentoo Media 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.