Correlation Between Lleidanetworks Serveis and Global Dominion

Can any of the company-specific risk be diversified away by investing in both Lleidanetworks Serveis and Global Dominion 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 Global Dominion 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 Global Dominion Access, you can compare the effects of market volatilities on Lleidanetworks Serveis and Global Dominion 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 Global Dominion. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lleidanetworks Serveis and Global Dominion.

Diversification Opportunities for Lleidanetworks Serveis and Global Dominion

0.2

Correlation Coefficient

Lleidanetworks Serveis  Global Dominion

Modest diversification

The 3 months correlation between Lleidanetworks and Global is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Lleidanetworks Serveis Telemat and Global Dominion Access in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Dominion Access 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 Global Dominion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Dominion Access has no effect on the direction of Lleidanetworks Serveis i.e., Lleidanetworks Serveis and Global Dominion go up and down completely randomly.

Pair Corralation between Lleidanetworks Serveis and Global Dominion

Assuming the 90 days trading horizon Lleidanetworks Serveis is expected to generate 1.31 times less return on investment than Global Dominion. In addition to that, Lleidanetworks Serveis is 2.49 times more volatile than Global Dominion Access. It trades about 0.06 of its total potential returns per unit of risk. Global Dominion Access is currently generating about 0.2 per unit of volatility. If you would invest  279.00  in Global Dominion Access on April 22, 2025 and sell it today you would earn a total of  47.00  from holding Global Dominion Access or generate 16.85% return on investment over 90 days.

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

Lleidanetworks Serveis Telemat  vs.  Global Dominion Access

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.

Global Dominion Access

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Global Dominion Access are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady primary indicators, Global Dominion exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Lleidanetworks Serveis and Global Dominion

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

The idea behind Lleidanetworks Serveis Telematics and Global Dominion Access 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.