Correlation Between LPKF Laser and Science Applications
Can any of the company-specific risk be diversified away by investing in both LPKF Laser and Science Applications 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 Science Applications 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 Science Applications International, you can compare the effects of market volatilities on LPKF Laser and Science Applications 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 Science Applications. Check out your portfolio center. Please also check ongoing floating volatility patterns of LPKF Laser and Science Applications.
Diversification Opportunities for LPKF Laser and Science Applications
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between LPKF and Science is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding LPKF Laser Electronics and Science Applications Internati in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Science Applications 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 Science Applications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Science Applications has no effect on the direction of LPKF Laser i.e., LPKF Laser and Science Applications go up and down completely randomly.
Pair Corralation between LPKF Laser and Science Applications
Assuming the 90 days horizon LPKF Laser Electronics is expected to generate 1.25 times more return on investment than Science Applications. However, LPKF Laser is 1.25 times more volatile than Science Applications International. It trades about -0.03 of its potential returns per unit of risk. Science Applications International is currently generating about -0.3 per unit of risk. If you would invest 849.00 in LPKF Laser Electronics on September 14, 2024 and sell it today you would lose (47.00) from holding LPKF Laser Electronics or give up 5.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
LPKF Laser Electronics vs. Science Applications Internati
Performance |
| Timeline |
| LPKF Laser Electronics |
| Science Applications |
LPKF Laser and Science Applications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LPKF Laser and Science Applications
The main advantage of trading using opposite LPKF Laser and Science Applications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LPKF Laser position performs unexpectedly, Science Applications 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 Science Applications will offset losses from the drop in Science Applications' long position.| LPKF Laser vs. Schneider Electric SE | LPKF Laser vs. Superior Plus Corp | LPKF Laser vs. SIVERS SEMICONDUCTORS AB | LPKF Laser vs. Norsk Hydro ASA |
| Science Applications vs. PSI Software AG | Science Applications vs. Universal Display | Science Applications vs. JD SPORTS FASH | Science Applications vs. Constellation Software |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Transaction History View history of all your transactions and understand their impact on performance |