Correlation Between LightPath Technologies and Frontier
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By analyzing existing cross correlation between LightPath Technologies and Frontier Florida 686, you can compare the effects of market volatilities on LightPath Technologies and Frontier 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 LightPath Technologies with a short position of Frontier. Check out your portfolio center. Please also check ongoing floating volatility patterns of LightPath Technologies and Frontier.
Diversification Opportunities for LightPath Technologies and Frontier
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between LightPath and Frontier is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding LightPath Technologies and Frontier Florida 686 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Frontier Florida 686 and LightPath Technologies 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 LightPath Technologies are associated (or correlated) with Frontier. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Frontier Florida 686 has no effect on the direction of LightPath Technologies i.e., LightPath Technologies and Frontier go up and down completely randomly.
Pair Corralation between LightPath Technologies and Frontier
Given the investment horizon of 90 days LightPath Technologies is expected to generate 4.2 times more return on investment than Frontier. However, LightPath Technologies is 4.2 times more volatile than Frontier Florida 686. It trades about 0.06 of its potential returns per unit of risk. Frontier Florida 686 is currently generating about -0.01 per unit of risk. If you would invest 149.00 in LightPath Technologies on December 10, 2024 and sell it today you would earn a total of 70.00 from holding LightPath Technologies or generate 46.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 84.64% |
| Values | Daily Returns |
LightPath Technologies vs. Frontier Florida 686
Performance |
| Timeline |
| LightPath Technologies |
| Frontier Florida 686 |
LightPath Technologies and Frontier Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LightPath Technologies and Frontier
The main advantage of trading using opposite LightPath Technologies and Frontier positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LightPath Technologies position performs unexpectedly, Frontier 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 Frontier will offset losses from the drop in Frontier's long position.| LightPath Technologies vs. Methode Electronics | ||
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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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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