Correlation Between Launch One and LG Display

Can any of the company-specific risk be diversified away by investing in both Launch One and LG Display 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 Launch One and LG Display into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Launch One Acquisition and LG Display Co, you can compare the effects of market volatilities on Launch One and LG Display 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 Launch One with a short position of LG Display. Check out your portfolio center. Please also check ongoing floating volatility patterns of Launch One and LG Display.

Diversification Opportunities for Launch One and LG Display

-0.29

Correlation Coefficient

Launch One  LG Display

Very good diversification

The 3 months correlation between Launch and LPL is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Launch One Acquisition and LG Display Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LG Display and Launch One 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 Launch One Acquisition are associated (or correlated) with LG Display. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LG Display has no effect on the direction of Launch One i.e., Launch One and LG Display go up and down completely randomly.

Pair Corralation between Launch One and LG Display

Given the investment horizon of 90 days Launch One is expected to generate 24.51 times less return on investment than LG Display. But when comparing it to its historical volatility, Launch One Acquisition is 23.35 times less risky than LG Display. It trades about 0.06 of its potential returns per unit of risk. LG Display Co is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  344.00  in LG Display Co on September 16, 2025 and sell it today you would earn a total of  77.00  from holding LG Display Co or generate 22.38% return on investment over 90 days.

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

Launch One Acquisition  vs.  LG Display Co

Launch One Acquisition

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Launch One Acquisition are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Launch One is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

LG Display

Risk-Adjusted Performance

Weakest

Over the last 90 days LG Display Co has generated negative risk-adjusted returns adding no value to investors with long positions. Despite inconsistent performance in the last few months, the Stock's basic indicators remain quite persistent which may send shares a bit higher in January 2026. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with Launch One and LG Display

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

The idea behind Launch One Acquisition and LG Display Co 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.