Correlation Between LPKF Laser and Orient Telecoms
Can any of the company-specific risk be diversified away by investing in both LPKF Laser and Orient Telecoms 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 Orient Telecoms 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 Orient Telecoms, you can compare the effects of market volatilities on LPKF Laser and Orient Telecoms 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 Orient Telecoms. Check out your portfolio center. Please also check ongoing floating volatility patterns of LPKF Laser and Orient Telecoms.
Diversification Opportunities for LPKF Laser and Orient Telecoms
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between LPKF and Orient is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding LPKF Laser Electronics and Orient Telecoms in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Orient Telecoms 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 Orient Telecoms. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Orient Telecoms has no effect on the direction of LPKF Laser i.e., LPKF Laser and Orient Telecoms go up and down completely randomly.
Pair Corralation between LPKF Laser and Orient Telecoms
If you would invest 800.00 in Orient Telecoms on August 30, 2024 and sell it today you would earn a total of 0.00 from holding Orient Telecoms or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
LPKF Laser Electronics vs. Orient Telecoms
Performance |
| Timeline |
| LPKF Laser Electronics |
| Orient Telecoms |
LPKF Laser and Orient Telecoms Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LPKF Laser and Orient Telecoms
The main advantage of trading using opposite LPKF Laser and Orient Telecoms positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LPKF Laser position performs unexpectedly, Orient Telecoms 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 Orient Telecoms will offset losses from the drop in Orient Telecoms' long position.| LPKF Laser vs. Tungsten West PLC | LPKF Laser vs. Argo Group Limited | LPKF Laser vs. Hardide PLC | LPKF Laser vs. Versarien PLC |
| Orient Telecoms vs. CVR Energy | Orient Telecoms vs. Viridian Therapeutics | Orient Telecoms vs. Dollar Tree | Orient Telecoms vs. News Corp Cl |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |