Correlation Between LPKF Laser and Ecofin Global
Can any of the company-specific risk be diversified away by investing in both LPKF Laser and Ecofin Global 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 Ecofin Global 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 Ecofin Global Utilities, you can compare the effects of market volatilities on LPKF Laser and Ecofin Global 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 Ecofin Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of LPKF Laser and Ecofin Global.
Diversification Opportunities for LPKF Laser and Ecofin Global
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between LPKF and Ecofin is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding LPKF Laser Electronics and Ecofin Global Utilities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ecofin Global Utilities 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 Ecofin Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ecofin Global Utilities has no effect on the direction of LPKF Laser i.e., LPKF Laser and Ecofin Global go up and down completely randomly.
Pair Corralation between LPKF Laser and Ecofin Global
Assuming the 90 days trading horizon LPKF Laser Electronics is expected to under-perform the Ecofin Global. In addition to that, LPKF Laser is 1.11 times more volatile than Ecofin Global Utilities. It trades about -0.15 of its total potential returns per unit of risk. Ecofin Global Utilities is currently generating about 0.07 per unit of volatility. If you would invest 18,400 in Ecofin Global Utilities on September 14, 2024 and sell it today you would earn a total of 300.00 from holding Ecofin Global Utilities or generate 1.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
LPKF Laser Electronics vs. Ecofin Global Utilities
Performance |
| Timeline |
| LPKF Laser Electronics |
| Ecofin Global Utilities |
LPKF Laser and Ecofin Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LPKF Laser and Ecofin Global
The main advantage of trading using opposite LPKF Laser and Ecofin Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LPKF Laser position performs unexpectedly, Ecofin Global 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 Ecofin Global will offset losses from the drop in Ecofin Global's long position.| LPKF Laser vs. Samsung Electronics Co | LPKF Laser vs. Samsung Electronics Co | LPKF Laser vs. Hyundai Motor | LPKF Laser vs. Reliance Industries Ltd |
| Ecofin Global vs. Eastinco Mining Exploration | Ecofin Global vs. Dolly Varden Silver | Ecofin Global vs. LPKF Laser Electronics | Ecofin Global vs. Park Hotels Resorts |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |