Correlation Between Lightbridge Corp and Flux Power
Can any of the company-specific risk be diversified away by investing in both Lightbridge Corp and Flux Power 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 Lightbridge Corp and Flux Power into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lightbridge Corp and Flux Power Holdings, you can compare the effects of market volatilities on Lightbridge Corp and Flux Power 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 Lightbridge Corp with a short position of Flux Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lightbridge Corp and Flux Power.
Diversification Opportunities for Lightbridge Corp and Flux Power
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lightbridge and Flux is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Lightbridge Corp and Flux Power Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Flux Power Holdings and Lightbridge Corp 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 Lightbridge Corp are associated (or correlated) with Flux Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Flux Power Holdings has no effect on the direction of Lightbridge Corp i.e., Lightbridge Corp and Flux Power go up and down completely randomly.
Pair Corralation between Lightbridge Corp and Flux Power
Given the investment horizon of 90 days Lightbridge Corp is expected to generate 1.98 times more return on investment than Flux Power. However, Lightbridge Corp is 1.98 times more volatile than Flux Power Holdings. It trades about 0.11 of its potential returns per unit of risk. Flux Power Holdings is currently generating about -0.04 per unit of risk. If you would invest 269.00 in Lightbridge Corp on August 31, 2024 and sell it today you would earn a total of 385.00 from holding Lightbridge Corp or generate 143.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lightbridge Corp vs. Flux Power Holdings
Performance |
| Timeline |
| Lightbridge Corp |
| Flux Power Holdings |
Lightbridge Corp and Flux Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lightbridge Corp and Flux Power
The main advantage of trading using opposite Lightbridge Corp and Flux Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lightbridge Corp position performs unexpectedly, Flux Power 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 Flux Power will offset losses from the drop in Flux Power's long position.| Lightbridge Corp vs. Espey Mfg Electronics | Lightbridge Corp vs. Hayward Holdings | Lightbridge Corp vs. Kimball Electronics | Lightbridge Corp vs. NeoVolta Warrant |
| Flux Power vs. Plug Power | Flux Power vs. FREYR Battery SA | Flux Power vs. FuelCell Energy | Flux Power vs. Enovix Corp |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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