Correlation Between LOBO EV and Analog Devices

Can any of the company-specific risk be diversified away by investing in both LOBO EV and Analog Devices 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 LOBO EV and Analog Devices into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between LOBO EV TECHNOLOGIES and Analog Devices, you can compare the effects of market volatilities on LOBO EV and Analog Devices 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 LOBO EV with a short position of Analog Devices. Check out your portfolio center. Please also check ongoing floating volatility patterns of LOBO EV and Analog Devices.

Diversification Opportunities for LOBO EV and Analog Devices

-0.59

Correlation Coefficient

LOBO EV  Analog Devices

Excellent diversification

The 3 months correlation between LOBO and Analog is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding LOBO EV TECHNOLOGIES and Analog Devices in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Analog Devices and LOBO EV 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 LOBO EV TECHNOLOGIES are associated (or correlated) with Analog Devices. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Analog Devices has no effect on the direction of LOBO EV i.e., LOBO EV and Analog Devices go up and down completely randomly.

Pair Corralation between LOBO EV and Analog Devices

Given the investment horizon of 90 days LOBO EV is expected to generate 2.09 times less return on investment than Analog Devices. In addition to that, LOBO EV is 10.93 times more volatile than Analog Devices. It trades about 0.0 of its total potential returns per unit of risk. Analog Devices is currently generating about 0.06 per unit of volatility. If you would invest  22,121  in Analog Devices on May 21, 2025 and sell it today you would earn a total of  1,034  from holding Analog Devices or generate 4.67% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

LOBO EV TECHNOLOGIES  vs.  Analog Devices

LOBO EV TECHNOLOGIES

Risk-Adjusted Performance

Weakest

Over the last 90 days LOBO EV TECHNOLOGIES has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy fundamental drivers, LOBO EV is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Analog Devices

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Analog Devices are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong fundamental indicators, Analog Devices is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with LOBO EV and Analog Devices

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

The idea behind LOBO EV TECHNOLOGIES and Analog Devices 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.