Correlation Between N Leventeris and N Leventeris

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

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

Diversification Opportunities for N Leventeris and N Leventeris

0.24

Correlation Coefficient

N Leventeris  N Leventeris

Modest diversification

The 3 months correlation between LEBEP and LEBEK is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding N Leventeris SA and N Leventeris SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on N Leventeris SA and N Leventeris 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 N Leventeris SA are associated (or correlated) with N Leventeris. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of N Leventeris SA has no effect on the direction of N Leventeris i.e., N Leventeris and N Leventeris go up and down completely randomly.

Pair Corralation between N Leventeris and N Leventeris

Assuming the 90 days trading horizon N Leventeris SA is expected to under-perform the N Leventeris. But the stock apears to be less risky and, when comparing its historical volatility, N Leventeris SA is 1.07 times less risky than N Leventeris. The stock trades about -0.03 of its potential returns per unit of risk. The N Leventeris SA is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  22.00  in N Leventeris SA on April 25, 2025 and sell it today you would earn a total of  3.00  from holding N Leventeris SA or generate 13.64% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

N Leventeris SA  vs.  N Leventeris SA

N Leventeris SA

Risk-Adjusted Performance

Very Weak

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

N Leventeris SA

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in N Leventeris SA are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, N Leventeris sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with N Leventeris and N Leventeris

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

The idea behind N Leventeris SA and N Leventeris SA 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.