Correlation Between Chocoladefabriken and LPKF Laser
Can any of the company-specific risk be diversified away by investing in both Chocoladefabriken and LPKF Laser 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 Chocoladefabriken and LPKF Laser into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chocoladefabriken Lindt Spruengli and LPKF Laser Electronics, you can compare the effects of market volatilities on Chocoladefabriken and LPKF Laser 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 Chocoladefabriken with a short position of LPKF Laser. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chocoladefabriken and LPKF Laser.
Diversification Opportunities for Chocoladefabriken and LPKF Laser
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Chocoladefabriken and LPKF is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Chocoladefabriken Lindt Spruen and LPKF Laser Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LPKF Laser Electronics and Chocoladefabriken 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 Chocoladefabriken Lindt Spruengli are associated (or correlated) with LPKF Laser. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LPKF Laser Electronics has no effect on the direction of Chocoladefabriken i.e., Chocoladefabriken and LPKF Laser go up and down completely randomly.
Pair Corralation between Chocoladefabriken and LPKF Laser
Assuming the 90 days trading horizon Chocoladefabriken is expected to generate 2.28 times less return on investment than LPKF Laser. But when comparing it to its historical volatility, Chocoladefabriken Lindt Spruengli is 1.93 times less risky than LPKF Laser. It trades about 0.04 of its potential returns per unit of risk. LPKF Laser Electronics is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 868.00 in LPKF Laser Electronics on November 1, 2024 and sell it today you would earn a total of 36.00 from holding LPKF Laser Electronics or generate 4.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.39% |
| Values | Daily Returns |
Chocoladefabriken Lindt Spruen vs. LPKF Laser Electronics
Performance |
| Timeline |
| Chocoladefabriken Lindt |
| LPKF Laser Electronics |
Chocoladefabriken and LPKF Laser Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chocoladefabriken and LPKF Laser
The main advantage of trading using opposite Chocoladefabriken and LPKF Laser positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chocoladefabriken position performs unexpectedly, LPKF Laser 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 LPKF Laser will offset losses from the drop in LPKF Laser's long position.| Chocoladefabriken vs. Atalaya Mining | Chocoladefabriken vs. GoldMining | Chocoladefabriken vs. PPHE Hotel Group | Chocoladefabriken vs. Dalata Hotel Group |
| LPKF Laser vs. Berkshire Hathaway | LPKF Laser vs. Samsung Electronics Co | LPKF Laser vs. Samsung Electronics Co | LPKF Laser vs. Chocoladefabriken Lindt Spruengli |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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