Correlation Between Lenta PLC and Marks Spencer

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

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

Diversification Opportunities for Lenta PLC and Marks Spencer

0.0

Correlation Coefficient

Lenta PLC  Marks Spencer

Pay attention - limited upside

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

Pair Corralation between Lenta PLC and Marks Spencer

If you would invest  177.00  in Lenta PLC on May 7, 2025 and sell it today you would earn a total of  0.00  from holding Lenta PLC or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.39%
Values	Daily Returns

Lenta PLC  vs.  Marks Spencer Group

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.

Marks Spencer Group

Risk-Adjusted Performance

Weakest

Over the last 90 days Marks Spencer Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest fragile performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Pair Trading with Lenta PLC and Marks Spencer

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

The idea behind Lenta PLC and Marks Spencer Group 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.

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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.