Correlation Between Ocean Power and Lightbridge Corp
Can any of the company-specific risk be diversified away by investing in both Ocean Power and Lightbridge Corp 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 Ocean Power and Lightbridge Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ocean Power Technologies and Lightbridge Corp, you can compare the effects of market volatilities on Ocean Power and Lightbridge Corp 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 Ocean Power with a short position of Lightbridge Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ocean Power and Lightbridge Corp.
Diversification Opportunities for Ocean Power and Lightbridge Corp
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Ocean and Lightbridge is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Ocean Power Technologies and Lightbridge Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lightbridge Corp and Ocean Power 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 Ocean Power Technologies are associated (or correlated) with Lightbridge Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lightbridge Corp has no effect on the direction of Ocean Power i.e., Ocean Power and Lightbridge Corp go up and down completely randomly.
Pair Corralation between Ocean Power and Lightbridge Corp
Given the investment horizon of 90 days Ocean Power is expected to generate 1.03 times less return on investment than Lightbridge Corp. In addition to that, Ocean Power is 1.27 times more volatile than Lightbridge Corp. It trades about 0.04 of its total potential returns per unit of risk. Lightbridge Corp is currently generating about 0.06 per unit of volatility. If you would invest 413.00 in Lightbridge Corp on November 26, 2024 and sell it today you would earn a total of 557.00 from holding Lightbridge Corp or generate 134.87% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Ocean Power Technologies vs. Lightbridge Corp
Performance |
Timeline |
Ocean Power Technologies |
Lightbridge Corp |
Ocean Power and Lightbridge Corp Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Ocean Power and Lightbridge Corp
The main advantage of trading using opposite Ocean Power and Lightbridge Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ocean Power position performs unexpectedly, Lightbridge Corp 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 Lightbridge Corp will offset losses from the drop in Lightbridge Corp's long position.Ocean Power vs. Pioneer Power Solutions | ||
Ocean Power vs. CBAK Energy Technology | ||
Ocean Power vs. Ideal Power | ||
Ocean Power vs. Expion360 |
Lightbridge Corp vs. Espey Mfg Electronics | ||
Lightbridge Corp vs. Hayward Holdings | ||
Lightbridge Corp vs. Kimball Electronics | ||
Lightbridge Corp vs. NeoVolta Warrant |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |