Correlation Between LYFT and Appfolio
Can any of the company-specific risk be diversified away by investing in both LYFT and Appfolio 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 LYFT and Appfolio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LYFT Inc and Appfolio, you can compare the effects of market volatilities on LYFT and Appfolio 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 LYFT with a short position of Appfolio. Check out your portfolio center. Please also check ongoing floating volatility patterns of LYFT and Appfolio.
Diversification Opportunities for LYFT and Appfolio
Very good diversification
The 3 months correlation between LYFT and Appfolio is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding LYFT Inc and Appfolio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Appfolio and LYFT 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 LYFT Inc are associated (or correlated) with Appfolio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Appfolio has no effect on the direction of LYFT i.e., LYFT and Appfolio go up and down completely randomly.
Pair Corralation between LYFT and Appfolio
Given the investment horizon of 90 days LYFT Inc is expected to generate 1.14 times more return on investment than Appfolio. However, LYFT is 1.14 times more volatile than Appfolio. It trades about 0.16 of its potential returns per unit of risk. Appfolio is currently generating about -0.03 per unit of risk. If you would invest 1,473 in LYFT Inc on July 23, 2025 and sell it today you would earn a total of 548.00 from holding LYFT Inc or generate 37.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
LYFT Inc vs. Appfolio
Performance |
| Timeline |
| LYFT Inc |
| Appfolio |
LYFT and Appfolio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LYFT and Appfolio
The main advantage of trading using opposite LYFT and Appfolio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LYFT position performs unexpectedly, Appfolio 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 Appfolio will offset losses from the drop in Appfolio's long position.| LYFT vs. Descartes Systems Group | LYFT vs. Paylocity Holdng | LYFT vs. Nice Ltd ADR | LYFT vs. CommVault Systems |
| Appfolio vs. Paylocity Holdng | Appfolio vs. Descartes Systems Group | Appfolio vs. Nice Ltd ADR | Appfolio vs. LYFT Inc |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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