Correlation Between LPKF Laser and Gruppo MutuiOnline
Can any of the company-specific risk be diversified away by investing in both LPKF Laser and Gruppo MutuiOnline 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 LPKF Laser and Gruppo MutuiOnline into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LPKF Laser Electronics and Gruppo MutuiOnline SpA, you can compare the effects of market volatilities on LPKF Laser and Gruppo MutuiOnline 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 LPKF Laser with a short position of Gruppo MutuiOnline. Check out your portfolio center. Please also check ongoing floating volatility patterns of LPKF Laser and Gruppo MutuiOnline.
Diversification Opportunities for LPKF Laser and Gruppo MutuiOnline
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between LPKF and Gruppo is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding LPKF Laser Electronics and Gruppo MutuiOnline SpA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gruppo MutuiOnline SpA and LPKF Laser 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 LPKF Laser Electronics are associated (or correlated) with Gruppo MutuiOnline. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gruppo MutuiOnline SpA has no effect on the direction of LPKF Laser i.e., LPKF Laser and Gruppo MutuiOnline go up and down completely randomly.
Pair Corralation between LPKF Laser and Gruppo MutuiOnline
Assuming the 90 days trading horizon LPKF Laser Electronics is expected to under-perform the Gruppo MutuiOnline. But the stock apears to be less risky and, when comparing its historical volatility, LPKF Laser Electronics is 19.5 times less risky than Gruppo MutuiOnline. The stock trades about -0.04 of its potential returns per unit of risk. The Gruppo MutuiOnline SpA is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 3,160 in Gruppo MutuiOnline SpA on September 12, 2024 and sell it today you would earn a total of 645.00 from holding Gruppo MutuiOnline SpA or generate 20.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 60.8% |
| Values | Daily Returns |
LPKF Laser Electronics vs. Gruppo MutuiOnline SpA
Performance |
| Timeline |
| LPKF Laser Electronics |
| Gruppo MutuiOnline SpA |
LPKF Laser and Gruppo MutuiOnline Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LPKF Laser and Gruppo MutuiOnline
The main advantage of trading using opposite LPKF Laser and Gruppo MutuiOnline positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LPKF Laser position performs unexpectedly, Gruppo MutuiOnline 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 Gruppo MutuiOnline will offset losses from the drop in Gruppo MutuiOnline's long position.| LPKF Laser vs. Hong Kong Land | LPKF Laser vs. Neometals | LPKF Laser vs. Coor Service Management | LPKF Laser vs. Fidelity Sustainable USD |
| Gruppo MutuiOnline vs. Hong Kong Land | Gruppo MutuiOnline vs. Neometals | Gruppo MutuiOnline vs. Coor Service Management | Gruppo MutuiOnline vs. Fidelity Sustainable USD |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |