Correlation Between Lasertec and SCREEN Holdings
Can any of the company-specific risk be diversified away by investing in both Lasertec and SCREEN Holdings 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 Lasertec and SCREEN Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lasertec and SCREEN Holdings Co, you can compare the effects of market volatilities on Lasertec and SCREEN Holdings 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 Lasertec with a short position of SCREEN Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lasertec and SCREEN Holdings.
Diversification Opportunities for Lasertec and SCREEN Holdings
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Lasertec and SCREEN is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Lasertec and SCREEN Holdings Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SCREEN Holdings and Lasertec 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 Lasertec are associated (or correlated) with SCREEN Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SCREEN Holdings has no effect on the direction of Lasertec i.e., Lasertec and SCREEN Holdings go up and down completely randomly.
Pair Corralation between Lasertec and SCREEN Holdings
If you would invest 9,612 in Lasertec on October 22, 2024 and sell it today you would earn a total of 90.00 from holding Lasertec or generate 0.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 10.0% |
| Values | Daily Returns |
Lasertec vs. SCREEN Holdings Co
Performance |
| Timeline |
| Lasertec |
| SCREEN Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
Lasertec and SCREEN Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lasertec and SCREEN Holdings
The main advantage of trading using opposite Lasertec and SCREEN Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lasertec position performs unexpectedly, SCREEN Holdings 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 SCREEN Holdings will offset losses from the drop in SCREEN Holdings' long position.| Lasertec vs. Sumco Corp ADR | Lasertec vs. Asm Pacific Technology | Lasertec vs. Disco Corp ADR | Lasertec vs. Tokyo Electron |
| SCREEN Holdings vs. Asm Pacific Technology | SCREEN Holdings vs. Disco Corp ADR | SCREEN Holdings vs. Tokyo Electron | SCREEN Holdings vs. Lasertec |
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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