Correlation Between LAKE MATERIALS and Access Bio

Can any of the company-specific risk be diversified away by investing in both LAKE MATERIALS and Access Bio 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 LAKE MATERIALS and Access Bio into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between LAKE MATERIALS LTD and Access Bio, you can compare the effects of market volatilities on LAKE MATERIALS and Access Bio 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 LAKE MATERIALS with a short position of Access Bio. Check out your portfolio center. Please also check ongoing floating volatility patterns of LAKE MATERIALS and Access Bio.

Diversification Opportunities for LAKE MATERIALS and Access Bio

0.0

Correlation Coefficient

LAKE MATERIALS  Access Bio

Pay attention - limited upside

The 3 months correlation between LAKE and Access is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding LAKE MATERIALS LTD and Access Bio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Access Bio and LAKE MATERIALS 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 LAKE MATERIALS LTD are associated (or correlated) with Access Bio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Access Bio has no effect on the direction of LAKE MATERIALS i.e., LAKE MATERIALS and Access Bio go up and down completely randomly.

Pair Corralation between LAKE MATERIALS and Access Bio

If you would invest  0.00  in Access Bio on September 5, 2024 and sell it today you would earn a total of  0.00  from holding Access Bio or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.72%
Values	Daily Returns

LAKE MATERIALS LTD  vs.  Access Bio

LAKE MATERIALS LTD

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days LAKE MATERIALS LTD has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Access Bio

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Access Bio has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Access Bio is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with LAKE MATERIALS and Access Bio

The main advantage of trading using opposite LAKE MATERIALS and Access Bio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LAKE MATERIALS position performs unexpectedly, Access Bio 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 Access Bio will offset losses from the drop in Access Bio's long position.

The idea behind LAKE MATERIALS LTD and Access Bio pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.