Correlation Between Ligitek Electronics and Celxpert Energy
Can any of the company-specific risk be diversified away by investing in both Ligitek Electronics and Celxpert Energy 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 Ligitek Electronics and Celxpert Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ligitek Electronics Co and Celxpert Energy, you can compare the effects of market volatilities on Ligitek Electronics and Celxpert Energy 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 Ligitek Electronics with a short position of Celxpert Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ligitek Electronics and Celxpert Energy.
Diversification Opportunities for Ligitek Electronics and Celxpert Energy
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Ligitek and Celxpert is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Ligitek Electronics Co and Celxpert Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Celxpert Energy and Ligitek Electronics 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 Ligitek Electronics Co are associated (or correlated) with Celxpert Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Celxpert Energy has no effect on the direction of Ligitek Electronics i.e., Ligitek Electronics and Celxpert Energy go up and down completely randomly.
Pair Corralation between Ligitek Electronics and Celxpert Energy
Assuming the 90 days trading horizon Ligitek Electronics Co is expected to generate 0.42 times more return on investment than Celxpert Energy. However, Ligitek Electronics Co is 2.37 times less risky than Celxpert Energy. It trades about 0.4 of its potential returns per unit of risk. Celxpert Energy is currently generating about 0.12 per unit of risk. If you would invest 3,635 in Ligitek Electronics Co on September 15, 2024 and sell it today you would earn a total of 915.00 from holding Ligitek Electronics Co or generate 25.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Ligitek Electronics Co vs. Celxpert Energy
Performance |
| Timeline |
| Ligitek Electronics |
| Celxpert Energy |
Ligitek Electronics and Celxpert Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ligitek Electronics and Celxpert Energy
The main advantage of trading using opposite Ligitek Electronics and Celxpert Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ligitek Electronics position performs unexpectedly, Celxpert Energy 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 Celxpert Energy will offset losses from the drop in Celxpert Energy's long position.| Ligitek Electronics vs. ANJI Technology Co | Ligitek Electronics vs. Emerging Display Technologies | Ligitek Electronics vs. U Tech Media Corp | Ligitek Electronics vs. Ruentex Development Co |
| Celxpert Energy vs. Top Union Electronics | Celxpert Energy vs. Taiwan Chinsan Electronic | Celxpert Energy vs. Ligitek Electronics Co | Celxpert Energy vs. uPI Semiconductor Corp |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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