Correlation Between Microvision and Cepton
Can any of the company-specific risk be diversified away by investing in both Microvision and Cepton 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 Microvision and Cepton into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Microvision and Cepton Inc, you can compare the effects of market volatilities on Microvision and Cepton 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 Microvision with a short position of Cepton. Check out your portfolio center. Please also check ongoing floating volatility patterns of Microvision and Cepton.
Diversification Opportunities for Microvision and Cepton
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Microvision and Cepton is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Microvision and Cepton Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cepton Inc and Microvision 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 Microvision are associated (or correlated) with Cepton. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cepton Inc has no effect on the direction of Microvision i.e., Microvision and Cepton go up and down completely randomly.
Pair Corralation between Microvision and Cepton
If you would invest (100.00) in Cepton Inc on January 14, 2025 and sell it today you would earn a total of 100.00 from holding Cepton Inc or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Microvision vs. Cepton Inc
Performance |
| Timeline |
| Microvision |
| Cepton Inc |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Microvision and Cepton Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Microvision and Cepton
The main advantage of trading using opposite Microvision and Cepton positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Microvision position performs unexpectedly, Cepton 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 Cepton will offset losses from the drop in Cepton's long position.| Microvision vs. Focus Universal | Microvision vs. ESCO Technologies | Microvision vs. Genasys | Microvision vs. Coherent |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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