Correlation Between LOBO EV and CompoSecure

Can any of the company-specific risk be diversified away by investing in both LOBO EV and CompoSecure 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 CompoSecure 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 CompoSecure, you can compare the effects of market volatilities on LOBO EV and CompoSecure 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 CompoSecure. Check out your portfolio center. Please also check ongoing floating volatility patterns of LOBO EV and CompoSecure.

Diversification Opportunities for LOBO EV and CompoSecure

-0.57

Correlation Coefficient

LOBO EV  CompoSecure

Excellent diversification

The 3 months correlation between LOBO and CompoSecure is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding LOBO EV TECHNOLOGIES and CompoSecure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CompoSecure 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 CompoSecure. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CompoSecure has no effect on the direction of LOBO EV i.e., LOBO EV and CompoSecure go up and down completely randomly.

Pair Corralation between LOBO EV and CompoSecure

Given the investment horizon of 90 days LOBO EV TECHNOLOGIES is expected to generate 5.8 times more return on investment than CompoSecure. However, LOBO EV is 5.8 times more volatile than CompoSecure. It trades about 0.07 of its potential returns per unit of risk. CompoSecure is currently generating about 0.22 per unit of risk. If you would invest  74.00  in LOBO EV TECHNOLOGIES on May 7, 2025 and sell it today you would lose (1.00) from holding LOBO EV TECHNOLOGIES or give up 1.35% of portfolio value over 90 days.

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

LOBO EV TECHNOLOGIES  vs.  CompoSecure

LOBO EV TECHNOLOGIES

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in LOBO EV TECHNOLOGIES are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of very uncertain fundamental drivers, LOBO EV displayed solid returns over the last few months and may actually be approaching a breakup point.

CompoSecure

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in CompoSecure are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating basic indicators, CompoSecure showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with LOBO EV and CompoSecure

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

The idea behind LOBO EV TECHNOLOGIES and CompoSecure 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.