Correlation Between LPKF Laser and ACCSYS TECHPLC
Can any of the company-specific risk be diversified away by investing in both LPKF Laser and ACCSYS TECHPLC 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 LPKF Laser and ACCSYS TECHPLC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LPKF Laser Electronics and ACCSYS TECHPLC EO, you can compare the effects of market volatilities on LPKF Laser and ACCSYS TECHPLC 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 LPKF Laser with a short position of ACCSYS TECHPLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of LPKF Laser and ACCSYS TECHPLC.
Diversification Opportunities for LPKF Laser and ACCSYS TECHPLC
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between LPKF and ACCSYS is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding LPKF Laser Electronics and ACCSYS TECHPLC EO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ACCSYS TECHPLC EO and LPKF Laser 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 LPKF Laser Electronics are associated (or correlated) with ACCSYS TECHPLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ACCSYS TECHPLC EO has no effect on the direction of LPKF Laser i.e., LPKF Laser and ACCSYS TECHPLC go up and down completely randomly.
Pair Corralation between LPKF Laser and ACCSYS TECHPLC
Assuming the 90 days horizon LPKF Laser Electronics is expected to generate 1.3 times more return on investment than ACCSYS TECHPLC. However, LPKF Laser is 1.3 times more volatile than ACCSYS TECHPLC EO. It trades about 0.04 of its potential returns per unit of risk. ACCSYS TECHPLC EO is currently generating about -0.05 per unit of risk. If you would invest 822.00 in LPKF Laser Electronics on November 2, 2024 and sell it today you would earn a total of 68.00 from holding LPKF Laser Electronics or generate 8.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
LPKF Laser Electronics vs. ACCSYS TECHPLC EO
Performance |
| Timeline |
| LPKF Laser Electronics |
| ACCSYS TECHPLC EO |
LPKF Laser and ACCSYS TECHPLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LPKF Laser and ACCSYS TECHPLC
The main advantage of trading using opposite LPKF Laser and ACCSYS TECHPLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LPKF Laser position performs unexpectedly, ACCSYS TECHPLC 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 ACCSYS TECHPLC will offset losses from the drop in ACCSYS TECHPLC's long position.| LPKF Laser vs. Honeywell International | LPKF Laser vs. Illinois Tool Works | LPKF Laser vs. Eaton PLC | LPKF Laser vs. Trane Technologies plc |
| ACCSYS TECHPLC vs. Virtu Financial | ACCSYS TECHPLC vs. TreeHouse Foods | ACCSYS TECHPLC vs. Molson Coors Beverage | ACCSYS TECHPLC vs. CHIBA BANK |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |