Correlation Between Lumen Technologies, and Multilaser Industrial

Can any of the company-specific risk be diversified away by investing in both Lumen Technologies, and Multilaser Industrial 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 Lumen Technologies, and Multilaser Industrial into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Lumen Technologies, and Multilaser Industrial SA, you can compare the effects of market volatilities on Lumen Technologies, and Multilaser Industrial 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 Lumen Technologies, with a short position of Multilaser Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lumen Technologies, and Multilaser Industrial.

Diversification Opportunities for Lumen Technologies, and Multilaser Industrial

0.01

Correlation Coefficient

Lumen Technologies,  Multilaser Industrial

Significant diversification

The 3 months correlation between Lumen and Multilaser is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Lumen Technologies, and Multilaser Industrial SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Multilaser Industrial and Lumen Technologies, 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 Lumen Technologies, are associated (or correlated) with Multilaser Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Multilaser Industrial has no effect on the direction of Lumen Technologies, i.e., Lumen Technologies, and Multilaser Industrial go up and down completely randomly.

Pair Corralation between Lumen Technologies, and Multilaser Industrial

Assuming the 90 days trading horizon Lumen Technologies, is expected to generate 1.77 times more return on investment than Multilaser Industrial. However, Lumen Technologies, is 1.77 times more volatile than Multilaser Industrial SA. It trades about 0.05 of its potential returns per unit of risk. Multilaser Industrial SA is currently generating about -0.02 per unit of risk. If you would invest  2,250  in Lumen Technologies, on May 19, 2025 and sell it today you would earn a total of  152.00  from holding Lumen Technologies, or generate 6.76% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Lumen Technologies,  vs.  Multilaser Industrial SA

Lumen Technologies,

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Lumen Technologies, are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite somewhat uncertain primary indicators, Lumen Technologies, may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Multilaser Industrial

Risk-Adjusted Performance

Weakest

Over the last 90 days Multilaser Industrial SA has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Multilaser Industrial is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Lumen Technologies, and Multilaser Industrial

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

The idea behind Lumen Technologies, and Multilaser Industrial SA 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.