Correlation Between News Corp and Luduson G

Can any of the company-specific risk be diversified away by investing in both News Corp and Luduson G 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 News Corp and Luduson G into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between News Corp B and Luduson G, you can compare the effects of market volatilities on News Corp and Luduson G 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 News Corp with a short position of Luduson G. Check out your portfolio center. Please also check ongoing floating volatility patterns of News Corp and Luduson G.

Diversification Opportunities for News Corp and Luduson G

0.81

Correlation Coefficient

News Corp  Luduson G

Very poor diversification

The 3 months correlation between News and Luduson is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding News Corp B and Luduson G in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Luduson G and News Corp 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 News Corp B are associated (or correlated) with Luduson G. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Luduson G has no effect on the direction of News Corp i.e., News Corp and Luduson G go up and down completely randomly.

Pair Corralation between News Corp and Luduson G

Considering the 90-day investment horizon News Corp is expected to generate 53.43 times less return on investment than Luduson G. But when comparing it to its historical volatility, News Corp B is 29.47 times less risky than Luduson G. It trades about 0.05 of its potential returns per unit of risk. Luduson G is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest  0.37  in Luduson G on May 7, 2025 and sell it today you would earn a total of  0.20  from holding Luduson G or generate 54.05% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	98.41%
Values	Daily Returns

News Corp B  vs.  Luduson G

News Corp B

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in News Corp B are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, News Corp is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Luduson G

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Luduson G are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of very weak basic indicators, Luduson G displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with News Corp and Luduson G

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

The idea behind News Corp B and Luduson G 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.