Correlation Between LPKF Laser and MINCO SILVER
Can any of the company-specific risk be diversified away by investing in both LPKF Laser and MINCO SILVER 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 MINCO SILVER 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 MINCO SILVER, you can compare the effects of market volatilities on LPKF Laser and MINCO SILVER 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 MINCO SILVER. Check out your portfolio center. Please also check ongoing floating volatility patterns of LPKF Laser and MINCO SILVER.
Diversification Opportunities for LPKF Laser and MINCO SILVER
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between LPKF and MINCO is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding LPKF Laser Electronics and MINCO SILVER in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MINCO SILVER 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 MINCO SILVER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MINCO SILVER has no effect on the direction of LPKF Laser i.e., LPKF Laser and MINCO SILVER go up and down completely randomly.
Pair Corralation between LPKF Laser and MINCO SILVER
Assuming the 90 days horizon LPKF Laser Electronics is expected to generate 0.89 times more return on investment than MINCO SILVER. However, LPKF Laser Electronics is 1.12 times less risky than MINCO SILVER. It trades about 0.07 of its potential returns per unit of risk. MINCO SILVER is currently generating about 0.02 per unit of risk. If you would invest 852.00 in LPKF Laser Electronics on October 17, 2024 and sell it today you would earn a total of 74.00 from holding LPKF Laser Electronics or generate 8.69% 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. MINCO SILVER
Performance |
| Timeline |
| LPKF Laser Electronics |
| MINCO SILVER |
LPKF Laser and MINCO SILVER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LPKF Laser and MINCO SILVER
The main advantage of trading using opposite LPKF Laser and MINCO SILVER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LPKF Laser position performs unexpectedly, MINCO SILVER 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 MINCO SILVER will offset losses from the drop in MINCO SILVER's long position.| LPKF Laser vs. CARSALESCOM | LPKF Laser vs. Cal Maine Foods | LPKF Laser vs. YATRA ONLINE DL 0001 | LPKF Laser vs. CHINA TONTINE WINES |
| MINCO SILVER vs. Entravision Communications | MINCO SILVER vs. ecotel communication ag | MINCO SILVER vs. LPKF Laser Electronics | MINCO SILVER vs. Highlight Communications AG |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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