Correlation Between Lemtech Holdings and ThinTech Materials
Can any of the company-specific risk be diversified away by investing in both Lemtech Holdings and ThinTech Materials 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 Lemtech Holdings and ThinTech Materials into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lemtech Holdings Co and ThinTech Materials Technology, you can compare the effects of market volatilities on Lemtech Holdings and ThinTech Materials 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 Lemtech Holdings with a short position of ThinTech Materials. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lemtech Holdings and ThinTech Materials.
Diversification Opportunities for Lemtech Holdings and ThinTech Materials
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Lemtech and ThinTech is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Lemtech Holdings Co and ThinTech Materials Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ThinTech Materials and Lemtech Holdings 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 Lemtech Holdings Co are associated (or correlated) with ThinTech Materials. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ThinTech Materials has no effect on the direction of Lemtech Holdings i.e., Lemtech Holdings and ThinTech Materials go up and down completely randomly.
Pair Corralation between Lemtech Holdings and ThinTech Materials
Assuming the 90 days trading horizon Lemtech Holdings Co is expected to generate 1.72 times more return on investment than ThinTech Materials. However, Lemtech Holdings is 1.72 times more volatile than ThinTech Materials Technology. It trades about 0.02 of its potential returns per unit of risk. ThinTech Materials Technology is currently generating about -0.27 per unit of risk. If you would invest 14,450 in Lemtech Holdings Co on October 25, 2024 and sell it today you would lose (50.00) from holding Lemtech Holdings Co or give up 0.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lemtech Holdings Co vs. ThinTech Materials Technology
Performance |
| Timeline |
| Lemtech Holdings |
| ThinTech Materials |
Lemtech Holdings and ThinTech Materials Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lemtech Holdings and ThinTech Materials
The main advantage of trading using opposite Lemtech Holdings and ThinTech Materials positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lemtech Holdings position performs unexpectedly, ThinTech Materials 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 ThinTech Materials will offset losses from the drop in ThinTech Materials' long position.| Lemtech Holdings vs. Primax Electronics | Lemtech Holdings vs. Nishoku Technology | Lemtech Holdings vs. Shin Zu Shing | Lemtech Holdings vs. Generalplus Technology |
| ThinTech Materials vs. Jetwell Computer Co | ThinTech Materials vs. U Media Communications | ThinTech Materials vs. Iron Force Industrial | ThinTech Materials vs. Elitegroup Computer Systems |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |