Correlation Between Lloyds Banking and LAir Liquide
Can any of the company-specific risk be diversified away by investing in both Lloyds Banking and LAir Liquide 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 Lloyds Banking and LAir Liquide into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lloyds Banking Group and LAir Liquide SA, you can compare the effects of market volatilities on Lloyds Banking and LAir Liquide 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 Lloyds Banking with a short position of LAir Liquide. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lloyds Banking and LAir Liquide.
Diversification Opportunities for Lloyds Banking and LAir Liquide
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lloyds and LAir is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Lloyds Banking Group and LAir Liquide SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LAir Liquide SA and Lloyds Banking 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 Lloyds Banking Group are associated (or correlated) with LAir Liquide. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LAir Liquide SA has no effect on the direction of Lloyds Banking i.e., Lloyds Banking and LAir Liquide go up and down completely randomly.
Pair Corralation between Lloyds Banking and LAir Liquide
Considering the 90-day investment horizon Lloyds Banking Group is expected to generate 1.31 times more return on investment than LAir Liquide. However, Lloyds Banking is 1.31 times more volatile than LAir Liquide SA. It trades about 0.12 of its potential returns per unit of risk. LAir Liquide SA is currently generating about -0.1 per unit of risk. If you would invest 432.00 in Lloyds Banking Group on August 29, 2025 and sell it today you would earn a total of 50.00 from holding Lloyds Banking Group or generate 11.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lloyds Banking Group vs. LAir Liquide SA
Performance |
| Timeline |
| Lloyds Banking Group |
| LAir Liquide SA |
Lloyds Banking and LAir Liquide Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lloyds Banking and LAir Liquide
The main advantage of trading using opposite Lloyds Banking and LAir Liquide positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lloyds Banking position performs unexpectedly, LAir Liquide 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 LAir Liquide will offset losses from the drop in LAir Liquide's long position.| Lloyds Banking vs. LAir Liquide SA | Lloyds Banking vs. Fair Isaac | Lloyds Banking vs. Video Display | Lloyds Banking vs. United Internet AG |
| LAir Liquide vs. Asure Software | LAir Liquide vs. Kingdee International Software | LAir Liquide vs. Zhibao Technology Class | LAir Liquide vs. Sunny Optical Technology |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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