Correlation Between Lufax Holding and Navient Corp
Can any of the company-specific risk be diversified away by investing in both Lufax Holding and Navient Corp 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 Lufax Holding and Navient Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lufax Holding and Navient Corp, you can compare the effects of market volatilities on Lufax Holding and Navient Corp 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 Lufax Holding with a short position of Navient Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lufax Holding and Navient Corp.
Diversification Opportunities for Lufax Holding and Navient Corp
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Lufax and Navient is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Lufax Holding and Navient Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Navient Corp and Lufax Holding 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 Lufax Holding are associated (or correlated) with Navient Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Navient Corp has no effect on the direction of Lufax Holding i.e., Lufax Holding and Navient Corp go up and down completely randomly.
Pair Corralation between Lufax Holding and Navient Corp
Allowing for the 90-day total investment horizon Lufax Holding is expected to under-perform the Navient Corp. In addition to that, Lufax Holding is 1.88 times more volatile than Navient Corp. It trades about -0.03 of its total potential returns per unit of risk. Navient Corp is currently generating about -0.03 per unit of volatility. If you would invest 1,343 in Navient Corp on August 27, 2025 and sell it today you would lose (84.00) from holding Navient Corp or give up 6.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lufax Holding vs. Navient Corp
Performance |
| Timeline |
| Lufax Holding |
| Navient Corp |
Lufax Holding and Navient Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lufax Holding and Navient Corp
The main advantage of trading using opposite Lufax Holding and Navient Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lufax Holding position performs unexpectedly, Navient Corp 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 Navient Corp will offset losses from the drop in Navient Corp's long position.| Lufax Holding vs. Ross Stores | Lufax Holding vs. BG Foods | Lufax Holding vs. NH Foods Ltd | Lufax Holding vs. Panache Beverage |
| Navient Corp vs. World Houseware Limited | Navient Corp vs. Taiwan Semiconductor Manufacturing | Navient Corp vs. H2O Retailing | Navient Corp vs. National Retail Properties |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |