Correlation Between Cub Elecparts and Laster Tech
Can any of the company-specific risk be diversified away by investing in both Cub Elecparts and Laster Tech 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 Cub Elecparts and Laster Tech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cub Elecparts and Laster Tech Corp, you can compare the effects of market volatilities on Cub Elecparts and Laster Tech 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 Cub Elecparts with a short position of Laster Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cub Elecparts and Laster Tech.
Diversification Opportunities for Cub Elecparts and Laster Tech
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Cub and Laster is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Cub Elecparts and Laster Tech Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Laster Tech Corp and Cub Elecparts 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 Cub Elecparts are associated (or correlated) with Laster Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Laster Tech Corp has no effect on the direction of Cub Elecparts i.e., Cub Elecparts and Laster Tech go up and down completely randomly.
Pair Corralation between Cub Elecparts and Laster Tech
Assuming the 90 days trading horizon Cub Elecparts is expected to generate 1.24 times less return on investment than Laster Tech. In addition to that, Cub Elecparts is 1.56 times more volatile than Laster Tech Corp. It trades about 0.03 of its total potential returns per unit of risk. Laster Tech Corp is currently generating about 0.07 per unit of volatility. If you would invest 3,830 in Laster Tech Corp on September 2, 2024 and sell it today you would earn a total of 80.00 from holding Laster Tech Corp or generate 2.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cub Elecparts vs. Laster Tech Corp
Performance |
| Timeline |
| Cub Elecparts |
| Laster Tech Corp |
Cub Elecparts and Laster Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cub Elecparts and Laster Tech
The main advantage of trading using opposite Cub Elecparts and Laster Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cub Elecparts position performs unexpectedly, Laster Tech 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 Laster Tech will offset losses from the drop in Laster Tech's long position.| Cub Elecparts vs. Chaintech Technology Corp | Cub Elecparts vs. Avision | Cub Elecparts vs. Clevo Co | Cub Elecparts vs. Elitegroup Computer Systems |
| Laster Tech vs. Excellence Optoelectronic | Laster Tech vs. Hota Industrial Mfg | Laster Tech vs. Global PMX Co | Laster Tech vs. Cub Elecparts |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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