Correlation Between Wearable Devices and LG Display
Can any of the company-specific risk be diversified away by investing in both Wearable Devices and LG Display 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 Wearable Devices and LG Display into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wearable Devices and LG Display Co, you can compare the effects of market volatilities on Wearable Devices and LG Display 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 Wearable Devices with a short position of LG Display. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wearable Devices and LG Display.
Diversification Opportunities for Wearable Devices and LG Display
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Wearable and LPL is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Wearable Devices and LG Display Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LG Display and Wearable Devices 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 Wearable Devices are associated (or correlated) with LG Display. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LG Display has no effect on the direction of Wearable Devices i.e., Wearable Devices and LG Display go up and down completely randomly.
Pair Corralation between Wearable Devices and LG Display
Given the investment horizon of 90 days Wearable Devices is expected to under-perform the LG Display. In addition to that, Wearable Devices is 1.52 times more volatile than LG Display Co. It trades about -0.09 of its total potential returns per unit of risk. LG Display Co is currently generating about 0.14 per unit of volatility. If you would invest 343.00 in LG Display Co on June 11, 2025 and sell it today you would earn a total of 103.00 from holding LG Display Co or generate 30.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 98.39% |
| Values | Daily Returns |
Wearable Devices vs. LG Display Co
Performance |
| Timeline |
| Wearable Devices |
| LG Display |
Wearable Devices and LG Display Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wearable Devices and LG Display
The main advantage of trading using opposite Wearable Devices and LG Display positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wearable Devices position performs unexpectedly, LG Display 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 LG Display will offset losses from the drop in LG Display's long position.| Wearable Devices vs. Algorhythm Holdings, | Wearable Devices vs. Wearable Devices | Wearable Devices vs. Koss Corporation | Wearable Devices vs. Apple Inc |
| LG Display vs. Universal Electronics | LG Display vs. Samsung Electronics Co | LG Display vs. Sony Group Corp | LG Display vs. Korea Electric Power |
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.
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