Correlation Between LSI Industries and Celestica
Can any of the company-specific risk be diversified away by investing in both LSI Industries and Celestica 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 LSI Industries and Celestica into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LSI Industries and Celestica, you can compare the effects of market volatilities on LSI Industries and Celestica 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 LSI Industries with a short position of Celestica. Check out your portfolio center. Please also check ongoing floating volatility patterns of LSI Industries and Celestica.
Diversification Opportunities for LSI Industries and Celestica
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between LSI and Celestica is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding LSI Industries and Celestica in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Celestica and LSI Industries 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 LSI Industries are associated (or correlated) with Celestica. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Celestica has no effect on the direction of LSI Industries i.e., LSI Industries and Celestica go up and down completely randomly.
Pair Corralation between LSI Industries and Celestica
Given the investment horizon of 90 days LSI Industries is expected to generate 3.08 times less return on investment than Celestica. But when comparing it to its historical volatility, LSI Industries is 1.25 times less risky than Celestica. It trades about 0.08 of its potential returns per unit of risk. Celestica is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 9,692 in Celestica on November 4, 2024 and sell it today you would earn a total of 2,655 from holding Celestica or generate 27.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
LSI Industries vs. Celestica
Performance |
| Timeline |
| LSI Industries |
| Celestica |
LSI Industries and Celestica Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LSI Industries and Celestica
The main advantage of trading using opposite LSI Industries and Celestica positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LSI Industries position performs unexpectedly, Celestica 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 Celestica will offset losses from the drop in Celestica's long position.| LSI Industries vs. Plexus Corp | LSI Industries vs. OSI Systems | LSI Industries vs. CTS Corporation | LSI Industries vs. Benchmark Electronics |
| Celestica vs. Plexus Corp | Celestica vs. Benchmark Electronics | Celestica vs. Flex | Celestica vs. Jabil Circuit |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |