Correlation Between LPKF Laser and Barrick Gold
Can any of the company-specific risk be diversified away by investing in both LPKF Laser and Barrick Gold 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 Barrick Gold 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 Barrick Gold, you can compare the effects of market volatilities on LPKF Laser and Barrick Gold 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 Barrick Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of LPKF Laser and Barrick Gold.
Diversification Opportunities for LPKF Laser and Barrick Gold
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between LPKF and Barrick is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding LPKF Laser Electronics and Barrick Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barrick Gold 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 Barrick Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Barrick Gold has no effect on the direction of LPKF Laser i.e., LPKF Laser and Barrick Gold go up and down completely randomly.
Pair Corralation between LPKF Laser and Barrick Gold
Assuming the 90 days horizon LPKF Laser Electronics is expected to under-perform the Barrick Gold. In addition to that, LPKF Laser is 2.56 times more volatile than Barrick Gold. It trades about -0.03 of its total potential returns per unit of risk. Barrick Gold is currently generating about 0.11 per unit of volatility. If you would invest 1,582 in Barrick Gold on September 14, 2024 and sell it today you would earn a total of 66.00 from holding Barrick Gold or generate 4.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
LPKF Laser Electronics vs. Barrick Gold
Performance |
| Timeline |
| LPKF Laser Electronics |
| Barrick Gold |
LPKF Laser and Barrick Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LPKF Laser and Barrick Gold
The main advantage of trading using opposite LPKF Laser and Barrick Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LPKF Laser position performs unexpectedly, Barrick Gold 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 Barrick Gold will offset losses from the drop in Barrick Gold's 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 |
| Barrick Gold vs. Benchmark Electronics | Barrick Gold vs. Chesapeake Utilities | Barrick Gold vs. BJs Restaurants | Barrick Gold vs. LPKF Laser Electronics |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |