Correlation Between Luxfer Holdings and SPX Corp
Can any of the company-specific risk be diversified away by investing in both Luxfer Holdings and SPX 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 Luxfer Holdings and SPX Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Luxfer Holdings PLC and SPX Corp, you can compare the effects of market volatilities on Luxfer Holdings and SPX 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 Luxfer Holdings with a short position of SPX Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Luxfer Holdings and SPX Corp.
Diversification Opportunities for Luxfer Holdings and SPX Corp
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Luxfer and SPX is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Luxfer Holdings PLC and SPX Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPX Corp and Luxfer Holdings 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 Luxfer Holdings PLC are associated (or correlated) with SPX Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPX Corp has no effect on the direction of Luxfer Holdings i.e., Luxfer Holdings and SPX Corp go up and down completely randomly.
Pair Corralation between Luxfer Holdings and SPX Corp
Given the investment horizon of 90 days Luxfer Holdings is expected to generate 1.42 times less return on investment than SPX Corp. In addition to that, Luxfer Holdings is 1.03 times more volatile than SPX Corp. It trades about 0.12 of its total potential returns per unit of risk. SPX Corp is currently generating about 0.17 per unit of volatility. If you would invest 15,876 in SPX Corp on June 12, 2025 and sell it today you would earn a total of 3,139 from holding SPX Corp or generate 19.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Luxfer Holdings PLC vs. SPX Corp
Performance |
| Timeline |
| Luxfer Holdings PLC |
| SPX Corp |
Luxfer Holdings and SPX Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Luxfer Holdings and SPX Corp
The main advantage of trading using opposite Luxfer Holdings and SPX Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Luxfer Holdings position performs unexpectedly, SPX 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 SPX Corp will offset losses from the drop in SPX Corp's long position.| Luxfer Holdings vs. Hurco Companies | Luxfer Holdings vs. Enerpac Tool Group | Luxfer Holdings vs. Enpro Industries | Luxfer Holdings vs. Omega Flex |
| SPX Corp vs. Standex International | SPX Corp vs. Enpro Industries | SPX Corp vs. Thermon Group Holdings | SPX Corp vs. Enerpac Tool Group |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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