Correlation Between LightPath Technologies and Curtis Mathes

Can any of the company-specific risk be diversified away by investing in both LightPath Technologies and Curtis Mathes 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 LightPath Technologies and Curtis Mathes into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between LightPath Technologies and Curtis Mathes Corp, you can compare the effects of market volatilities on LightPath Technologies and Curtis Mathes 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 LightPath Technologies with a short position of Curtis Mathes. Check out your portfolio center. Please also check ongoing floating volatility patterns of LightPath Technologies and Curtis Mathes.

Diversification Opportunities for LightPath Technologies and Curtis Mathes

-0.87

Correlation Coefficient

LightPath Technologies  Curtis Mathes

Pay attention - limited upside

The 3 months correlation between LightPath and Curtis is -0.87. Overlapping area represents the amount of risk that can be diversified away by holding LightPath Technologies and Curtis Mathes Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Curtis Mathes Corp and LightPath Technologies 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 LightPath Technologies are associated (or correlated) with Curtis Mathes. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Curtis Mathes Corp has no effect on the direction of LightPath Technologies i.e., LightPath Technologies and Curtis Mathes go up and down completely randomly.

Pair Corralation between LightPath Technologies and Curtis Mathes

Given the investment horizon of 90 days LightPath Technologies is expected to under-perform the Curtis Mathes. But the stock apears to be less risky and, when comparing its historical volatility, LightPath Technologies is 2.37 times less risky than Curtis Mathes. The stock trades about -0.16 of its potential returns per unit of risk. The Curtis Mathes Corp is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  0.01  in Curtis Mathes Corp on December 29, 2024 and sell it today you would earn a total of  0.01  from holding Curtis Mathes Corp or generate 100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	95.31%
Values	Daily Returns

LightPath Technologies  vs.  Curtis Mathes Corp

LightPath Technologies

Risk-Adjusted Performance

Very Weak

Over the last 90 days LightPath Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. Despite inconsistent performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in April 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Curtis Mathes Corp

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Curtis Mathes Corp are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of fairly inconsistent fundamental indicators, Curtis Mathes showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with LightPath Technologies and Curtis Mathes

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

The idea behind LightPath Technologies and Curtis Mathes Corp 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.

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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..