Correlation Between Lighting Science and NeoVolta Common
Can any of the company-specific risk be diversified away by investing in both Lighting Science and NeoVolta Common 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 Lighting Science and NeoVolta Common into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lighting Science Group and NeoVolta Common Stock, you can compare the effects of market volatilities on Lighting Science and NeoVolta Common 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 Lighting Science with a short position of NeoVolta Common. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lighting Science and NeoVolta Common.
Diversification Opportunities for Lighting Science and NeoVolta Common
-0.94 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Lighting and NeoVolta is -0.94. Overlapping area represents the amount of risk that can be diversified away by holding Lighting Science Group and NeoVolta Common Stock in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NeoVolta Common Stock and Lighting Science 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 Lighting Science Group are associated (or correlated) with NeoVolta Common. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NeoVolta Common Stock has no effect on the direction of Lighting Science i.e., Lighting Science and NeoVolta Common go up and down completely randomly.
Pair Corralation between Lighting Science and NeoVolta Common
If you would invest 328.00 in NeoVolta Common Stock on August 31, 2024 and sell it today you would earn a total of 168.00 from holding NeoVolta Common Stock or generate 51.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Lighting Science Group vs. NeoVolta Common Stock
Performance |
| Timeline |
| Lighting Science |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| NeoVolta Common Stock |
Lighting Science and NeoVolta Common Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lighting Science and NeoVolta Common
The main advantage of trading using opposite Lighting Science and NeoVolta Common positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lighting Science position performs unexpectedly, NeoVolta Common 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 NeoVolta Common will offset losses from the drop in NeoVolta Common's long position.| Lighting Science vs. Polar Power | Lighting Science vs. CBAK Energy Technology | Lighting Science vs. Ocean Power Technologies | Lighting Science vs. Enersys |
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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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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