Correlation Between Luxfer Holdings and Nuburu
Can any of the company-specific risk be diversified away by investing in both Luxfer Holdings and Nuburu 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 Luxfer Holdings and Nuburu into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Luxfer Holdings PLC and Nuburu Inc, you can compare the effects of market volatilities on Luxfer Holdings and Nuburu 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 Luxfer Holdings with a short position of Nuburu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Luxfer Holdings and Nuburu.
Diversification Opportunities for Luxfer Holdings and Nuburu
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Luxfer and Nuburu is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Luxfer Holdings PLC and Nuburu Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuburu Inc and Luxfer Holdings 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 Luxfer Holdings PLC are associated (or correlated) with Nuburu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuburu Inc has no effect on the direction of Luxfer Holdings i.e., Luxfer Holdings and Nuburu go up and down completely randomly.
Pair Corralation between Luxfer Holdings and Nuburu
Given the investment horizon of 90 days Luxfer Holdings PLC is expected to under-perform the Nuburu. But the stock apears to be less risky and, when comparing its historical volatility, Luxfer Holdings PLC is 17.28 times less risky than Nuburu. The stock trades about -0.32 of its potential returns per unit of risk. The Nuburu Inc is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 25.00 in Nuburu Inc on October 12, 2024 and sell it today you would earn a total of 31.00 from holding Nuburu Inc or generate 124.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Luxfer Holdings PLC vs. Nuburu Inc
Performance |
| Timeline |
| Luxfer Holdings PLC |
| Nuburu Inc |
Luxfer Holdings and Nuburu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Luxfer Holdings and Nuburu
The main advantage of trading using opposite Luxfer Holdings and Nuburu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Luxfer Holdings position performs unexpectedly, Nuburu 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 Nuburu will offset losses from the drop in Nuburu's long position.| Luxfer Holdings vs. Graham | Luxfer Holdings vs. Enerpac Tool Group | Luxfer Holdings vs. Kadant Inc | Luxfer Holdings vs. Omega Flex |
| Nuburu vs. Laser Photonics | Nuburu vs. JE Cleantech Holdings | Nuburu vs. Reelcause | Nuburu vs. Shapeways Holdings, Common |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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