Correlation Between Nano Labs and Lam Research
Can any of the company-specific risk be diversified away by investing in both Nano Labs and Lam Research 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 Nano Labs and Lam Research into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nano Labs and Lam Research Corp, you can compare the effects of market volatilities on Nano Labs and Lam Research 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 Nano Labs with a short position of Lam Research. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nano Labs and Lam Research.
Diversification Opportunities for Nano Labs and Lam Research
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Nano and Lam is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Nano Labs and Lam Research Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lam Research Corp and Nano Labs 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 Nano Labs are associated (or correlated) with Lam Research. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lam Research Corp has no effect on the direction of Nano Labs i.e., Nano Labs and Lam Research go up and down completely randomly.
Pair Corralation between Nano Labs and Lam Research
Allowing for the 90-day total investment horizon Nano Labs is expected to under-perform the Lam Research. In addition to that, Nano Labs is 2.34 times more volatile than Lam Research Corp. It trades about -0.16 of its total potential returns per unit of risk. Lam Research Corp is currently generating about 0.0 per unit of volatility. If you would invest 7,798 in Lam Research Corp on December 5, 2024 and sell it today you would lose (95.00) from holding Lam Research Corp or give up 1.22% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 97.5% |
Values | Daily Returns |
Nano Labs vs. Lam Research Corp
Performance |
Timeline |
Nano Labs |
Lam Research Corp |
Nano Labs and Lam Research Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Nano Labs and Lam Research
The main advantage of trading using opposite Nano Labs and Lam Research positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nano Labs position performs unexpectedly, Lam Research 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 Lam Research will offset losses from the drop in Lam Research's long position.Nano Labs vs. SEALSQ Corp | Nano Labs vs. GSI Technology | Nano Labs vs. SemiLEDS | Nano Labs vs. ChipMOS Technologies |
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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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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