Correlation Between Lite Access and Therma Bright
Can any of the company-specific risk be diversified away by investing in both Lite Access and Therma Bright 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 Lite Access and Therma Bright into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lite Access Technologies and Therma Bright, you can compare the effects of market volatilities on Lite Access and Therma Bright 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 Lite Access with a short position of Therma Bright. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lite Access and Therma Bright.
Diversification Opportunities for Lite Access and Therma Bright
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Lite and Therma is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Lite Access Technologies and Therma Bright in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Therma Bright and Lite Access 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 Lite Access Technologies are associated (or correlated) with Therma Bright. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Therma Bright has no effect on the direction of Lite Access i.e., Lite Access and Therma Bright go up and down completely randomly.
Pair Corralation between Lite Access and Therma Bright
If you would invest 3.50 in Therma Bright on November 3, 2024 and sell it today you would earn a total of 0.50 from holding Therma Bright or generate 14.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Lite Access Technologies vs. Therma Bright
Performance |
| Timeline |
| Lite Access Technologies |
| Therma Bright |
Lite Access and Therma Bright Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lite Access and Therma Bright
The main advantage of trading using opposite Lite Access and Therma Bright positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lite Access position performs unexpectedly, Therma Bright 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 Therma Bright will offset losses from the drop in Therma Bright's long position.| Lite Access vs. Braille Energy Systems | Lite Access vs. Manganese X Energy | Lite Access vs. Solar Alliance Energy | Lite Access vs. Therma Bright |
| Therma Bright vs. Solar Alliance Energy | Therma Bright vs. Braille Energy Systems | Therma Bright vs. MedMira | Therma Bright vs. Lite Access Technologies |
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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