Correlation Between LightPath Technologies and PFIZER
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By analyzing existing cross correlation between LightPath Technologies and PFIZER INC, you can compare the effects of market volatilities on LightPath Technologies and PFIZER 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 PFIZER. Check out your portfolio center. Please also check ongoing floating volatility patterns of LightPath Technologies and PFIZER.
Diversification Opportunities for LightPath Technologies and PFIZER
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between LightPath and PFIZER is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding LightPath Technologies and PFIZER INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PFIZER INC 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 PFIZER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PFIZER INC has no effect on the direction of LightPath Technologies i.e., LightPath Technologies and PFIZER go up and down completely randomly.
Pair Corralation between LightPath Technologies and PFIZER
Given the investment horizon of 90 days LightPath Technologies is expected to generate 8.1 times more return on investment than PFIZER. However, LightPath Technologies is 8.1 times more volatile than PFIZER INC. It trades about 0.03 of its potential returns per unit of risk. PFIZER INC is currently generating about 0.01 per unit of risk. If you would invest 169.00 in LightPath Technologies on December 2, 2024 and sell it today you would earn a total of 59.00 from holding LightPath Technologies or generate 34.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.15% |
| Values | Daily Returns |
LightPath Technologies vs. PFIZER INC
Performance |
| Timeline |
| LightPath Technologies |
| PFIZER INC |
LightPath Technologies and PFIZER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LightPath Technologies and PFIZER
The main advantage of trading using opposite LightPath Technologies and PFIZER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LightPath Technologies position performs unexpectedly, PFIZER 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 PFIZER will offset losses from the drop in PFIZER'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 Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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