Correlation Between Beeks Trading and LPKF Laser
Can any of the company-specific risk be diversified away by investing in both Beeks Trading 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 Beeks Trading and LPKF Laser into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Beeks Trading and LPKF Laser Electronics, you can compare the effects of market volatilities on Beeks Trading 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 Beeks Trading with a short position of LPKF Laser. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beeks Trading and LPKF Laser.
Diversification Opportunities for Beeks Trading and LPKF Laser
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Beeks and LPKF is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Beeks Trading 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 Beeks Trading 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 Beeks Trading 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 Beeks Trading i.e., Beeks Trading and LPKF Laser go up and down completely randomly.
Pair Corralation between Beeks Trading and LPKF Laser
Assuming the 90 days trading horizon Beeks Trading is expected to generate 3.62 times more return on investment than LPKF Laser. However, Beeks Trading is 3.62 times more volatile than LPKF Laser Electronics. It trades about 0.01 of its potential returns per unit of risk. LPKF Laser Electronics is currently generating about -0.06 per unit of risk. If you would invest 27,000 in Beeks Trading on September 2, 2024 and sell it today you would earn a total of 0.00 from holding Beeks Trading or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beeks Trading vs. LPKF Laser Electronics
Performance |
| Timeline |
| Beeks Trading |
| LPKF Laser Electronics |
Beeks Trading and LPKF Laser Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beeks Trading and LPKF Laser
The main advantage of trading using opposite Beeks Trading and LPKF Laser positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beeks Trading 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.| Beeks Trading vs. GreenX Metals | Beeks Trading vs. Neometals | Beeks Trading vs. Silvercorp Metals | Beeks Trading vs. Wheaton Precious Metals |
| LPKF Laser vs. Uniper SE | LPKF Laser vs. Mulberry Group PLC | LPKF Laser vs. London Security Plc | LPKF Laser vs. Triad Group PLC |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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