Correlation Between Preferred Bank and LBG MEDIA
Can any of the company-specific risk be diversified away by investing in both Preferred Bank and LBG 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 Preferred Bank and LBG MEDIA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Preferred Bank and LBG MEDIA PLC, you can compare the effects of market volatilities on Preferred Bank and LBG 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 Preferred Bank with a short position of LBG MEDIA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Preferred Bank and LBG MEDIA.
Diversification Opportunities for Preferred Bank and LBG MEDIA
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Preferred and LBG is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Preferred Bank and LBG MEDIA PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LBG MEDIA PLC and Preferred Bank 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 Preferred Bank are associated (or correlated) with LBG MEDIA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LBG MEDIA PLC has no effect on the direction of Preferred Bank i.e., Preferred Bank and LBG MEDIA go up and down completely randomly.
Pair Corralation between Preferred Bank and LBG MEDIA
Assuming the 90 days horizon Preferred Bank is expected to generate 0.55 times more return on investment than LBG MEDIA. However, Preferred Bank is 1.8 times less risky than LBG MEDIA. It trades about 0.28 of its potential returns per unit of risk. LBG MEDIA PLC is currently generating about -0.12 per unit of risk. If you would invest 7,100 in Preferred Bank on August 17, 2025 and sell it today you would earn a total of 700.00 from holding Preferred Bank or generate 9.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Preferred Bank vs. LBG MEDIA PLC
Performance |
| Timeline |
| Preferred Bank |
| LBG MEDIA PLC |
Preferred Bank and LBG MEDIA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Preferred Bank and LBG MEDIA
The main advantage of trading using opposite Preferred Bank and LBG MEDIA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Preferred Bank position performs unexpectedly, LBG 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 LBG MEDIA will offset losses from the drop in LBG MEDIA's long position.| Preferred Bank vs. Postal Savings Bank | Preferred Bank vs. UNICREDIT SPA ADR | Preferred Bank vs. SIVERS SEMICONDUCTORS AB | Preferred Bank vs. NorAm Drilling AS |
| LBG MEDIA vs. Pearson plc | LBG MEDIA vs. The New York | LBG MEDIA vs. SIVERS SEMICONDUCTORS AB | LBG MEDIA vs. BANK HANDLOWY |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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