Correlation Between ACCSYS TECHPLC and LPKF Laser
Can any of the company-specific risk be diversified away by investing in both ACCSYS TECHPLC 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 ACCSYS TECHPLC and LPKF Laser into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ACCSYS TECHPLC EO and LPKF Laser Electronics, you can compare the effects of market volatilities on ACCSYS TECHPLC 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 ACCSYS TECHPLC with a short position of LPKF Laser. Check out your portfolio center. Please also check ongoing floating volatility patterns of ACCSYS TECHPLC and LPKF Laser.
Diversification Opportunities for ACCSYS TECHPLC and LPKF Laser
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between ACCSYS and LPKF is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding ACCSYS TECHPLC EO 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 ACCSYS TECHPLC 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 ACCSYS TECHPLC EO 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 ACCSYS TECHPLC i.e., ACCSYS TECHPLC and LPKF Laser go up and down completely randomly.
Pair Corralation between ACCSYS TECHPLC and LPKF Laser
Assuming the 90 days horizon ACCSYS TECHPLC EO is expected to generate 1.0 times more return on investment than LPKF Laser. However, ACCSYS TECHPLC is 1.0 times more volatile than LPKF Laser Electronics. It trades about 0.07 of its potential returns per unit of risk. LPKF Laser Electronics is currently generating about 0.04 per unit of risk. If you would invest 50.00 in ACCSYS TECHPLC EO on December 4, 2024 and sell it today you would earn a total of 2.00 from holding ACCSYS TECHPLC EO or generate 4.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ACCSYS TECHPLC EO vs. LPKF Laser Electronics
Performance |
| Timeline |
| ACCSYS TECHPLC EO |
| LPKF Laser Electronics |
ACCSYS TECHPLC and LPKF Laser Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ACCSYS TECHPLC and LPKF Laser
The main advantage of trading using opposite ACCSYS TECHPLC and LPKF Laser positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ACCSYS TECHPLC 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.| ACCSYS TECHPLC vs. Elmos Semiconductor SE | ACCSYS TECHPLC vs. EPSILON HEALTHCARE LTD | ACCSYS TECHPLC vs. Taiwan Semiconductor Manufacturing | ACCSYS TECHPLC vs. Hua Hong Semiconductor |
| LPKF Laser vs. Universal Entertainment | LPKF Laser vs. Grupo Carso SAB | LPKF Laser vs. PROSIEBENSAT1 MEDIADR4 | LPKF Laser vs. ZINC MEDIA GR |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |