Correlation Between NYSE Composite and Lasertec
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and Lasertec 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 NYSE Composite and Lasertec into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Lasertec, you can compare the effects of market volatilities on NYSE Composite and Lasertec 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 NYSE Composite with a short position of Lasertec. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Lasertec.
Diversification Opportunities for NYSE Composite and Lasertec
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between NYSE and Lasertec is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Lasertec in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lasertec and NYSE Composite 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 NYSE Composite are associated (or correlated) with Lasertec. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lasertec has no effect on the direction of NYSE Composite i.e., NYSE Composite and Lasertec go up and down completely randomly.
Pair Corralation between NYSE Composite and Lasertec
Assuming the 90 days trading horizon NYSE Composite is expected to generate 0.29 times more return on investment than Lasertec. However, NYSE Composite is 3.5 times less risky than Lasertec. It trades about 0.13 of its potential returns per unit of risk. Lasertec is currently generating about -0.18 per unit of risk. If you would invest 1,959,424 in NYSE Composite on August 24, 2024 and sell it today you would earn a total of 37,406 from holding NYSE Composite or generate 1.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
NYSE Composite vs. Lasertec
Performance |
| Timeline |
NYSE Composite and Lasertec Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Lasertec
Pair trading matchups for Lasertec
Pair Trading with NYSE Composite and Lasertec
The main advantage of trading using opposite NYSE Composite and Lasertec positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, Lasertec 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 Lasertec will offset losses from the drop in Lasertec's long position.| NYSE Composite vs. Awilco Drilling PLC | NYSE Composite vs. AKITA Drilling | NYSE Composite vs. SunOpta | NYSE Composite vs. Delek Drilling |
| Lasertec vs. Sumco Corp ADR | Lasertec vs. Asm Pacific Technology | Lasertec vs. Disco Corp ADR | Lasertec vs. Tokyo Electron |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |