Correlation Between 5N Plus and Lenta PLC

Can any of the company-specific risk be diversified away by investing in both 5N Plus and Lenta PLC 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 5N Plus and Lenta PLC into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between 5N Plus and Lenta PLC, you can compare the effects of market volatilities on 5N Plus and Lenta PLC 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 5N Plus with a short position of Lenta PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of 5N Plus and Lenta PLC.

Diversification Opportunities for 5N Plus and Lenta PLC

0.0

Correlation Coefficient

5N Plus  Lenta PLC

Pay attention - limited upside

The 3 months correlation between FPLSF and Lenta is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding 5N Plus and Lenta PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lenta PLC and 5N Plus 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 5N Plus are associated (or correlated) with Lenta PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lenta PLC has no effect on the direction of 5N Plus i.e., 5N Plus and Lenta PLC go up and down completely randomly.

Pair Corralation between 5N Plus and Lenta PLC

If you would invest  707.00  in 5N Plus on July 7, 2025 and sell it today you would earn a total of  551.00  from holding 5N Plus or generate 77.93% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.46%
Values	Daily Returns

5N Plus  vs.  Lenta PLC

5N Plus

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in 5N Plus are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. Despite nearly unfluctuating basic indicators, 5N Plus reported solid returns over the last few months and may actually be approaching a breakup point.

Lenta PLC

Risk-Adjusted Performance

Weakest

Over the last 90 days Lenta PLC has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Lenta PLC is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with 5N Plus and Lenta PLC

The main advantage of trading using opposite 5N Plus and Lenta PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 5N Plus position performs unexpectedly, Lenta PLC 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 Lenta PLC will offset losses from the drop in Lenta PLC's long position.

The idea behind 5N Plus and Lenta PLC pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.