Correlation Between Uniper SE and LPKF Laser
Can any of the company-specific risk be diversified away by investing in both Uniper SE and LPKF Laser 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 Uniper SE and LPKF Laser into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Uniper SE and LPKF Laser Electronics, you can compare the effects of market volatilities on Uniper SE and LPKF Laser 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 Uniper SE with a short position of LPKF Laser. Check out your portfolio center. Please also check ongoing floating volatility patterns of Uniper SE and LPKF Laser.
Diversification Opportunities for Uniper SE and LPKF Laser
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Uniper and LPKF is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Uniper SE and LPKF Laser Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LPKF Laser Electronics and Uniper SE 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 Uniper SE are associated (or correlated) with LPKF Laser. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LPKF Laser Electronics has no effect on the direction of Uniper SE i.e., Uniper SE and LPKF Laser go up and down completely randomly.
Pair Corralation between Uniper SE and LPKF Laser
Assuming the 90 days trading horizon Uniper SE is expected to under-perform the LPKF Laser. But the stock apears to be less risky and, when comparing its historical volatility, Uniper SE is 1.09 times less risky than LPKF Laser. The stock trades about -0.11 of its potential returns per unit of risk. The LPKF Laser Electronics is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 855.00 in LPKF Laser Electronics on September 23, 2024 and sell it today you would earn a total of 30.00 from holding LPKF Laser Electronics or generate 3.51% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Uniper SE vs. LPKF Laser Electronics
Performance |
Timeline |
Uniper SE |
LPKF Laser Electronics |
Uniper SE and LPKF Laser Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Uniper SE and LPKF Laser
The main advantage of trading using opposite Uniper SE and LPKF Laser positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Uniper SE position performs unexpectedly, LPKF Laser 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 LPKF Laser will offset losses from the drop in LPKF Laser's long position.Uniper SE vs. Mulberry Group PLC | Uniper SE vs. London Security Plc | Uniper SE vs. Triad Group PLC | Uniper SE vs. SURETRACK MON |
LPKF Laser vs. Uniper SE | LPKF Laser vs. Mulberry Group PLC | LPKF Laser vs. London Security Plc | LPKF Laser vs. Triad Group PLC |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
Bonds Directory Find actively traded corporate debentures issued by US companies | |
Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |