Correlation Between Lleidanetworks Serveis and Commcenter

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

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

Diversification Opportunities for Lleidanetworks Serveis and Commcenter

0.16

Correlation Coefficient

Lleidanetworks Serveis  Commcenter

Average diversification

The 3 months correlation between Lleidanetworks and Commcenter is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Lleidanetworks Serveis Telemat and Commcenter SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Commcenter SA and Lleidanetworks Serveis 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 Lleidanetworks Serveis Telematics are associated (or correlated) with Commcenter. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Commcenter SA has no effect on the direction of Lleidanetworks Serveis i.e., Lleidanetworks Serveis and Commcenter go up and down completely randomly.

Pair Corralation between Lleidanetworks Serveis and Commcenter

Assuming the 90 days trading horizon Lleidanetworks Serveis Telematics is expected to generate 10.43 times more return on investment than Commcenter. However, Lleidanetworks Serveis is 10.43 times more volatile than Commcenter SA. It trades about 0.06 of its potential returns per unit of risk. Commcenter SA is currently generating about 0.15 per unit of risk. If you would invest  115.00  in Lleidanetworks Serveis Telematics on April 22, 2025 and sell it today you would earn a total of  11.00  from holding Lleidanetworks Serveis Telematics or generate 9.57% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	73.44%
Values	Daily Returns

Lleidanetworks Serveis Telemat  vs.  Commcenter SA

Lleidanetworks Serveis

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Lleidanetworks Serveis Telematics are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady basic indicators, Lleidanetworks Serveis may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Commcenter SA

Risk-Adjusted Performance

Good

Over the last 90 days Commcenter SA has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound primary indicators, Commcenter is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Lleidanetworks Serveis and Commcenter

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

The idea behind Lleidanetworks Serveis Telematics and Commcenter 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.

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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 CEOs Directory module to screen CEOs from public companies around the world.