Correlation Between Ebro Foods and LPKF Laser
Can any of the company-specific risk be diversified away by investing in both Ebro Foods 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 Ebro Foods and LPKF Laser into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ebro Foods and LPKF Laser Electronics, you can compare the effects of market volatilities on Ebro Foods 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 Ebro Foods with a short position of LPKF Laser. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ebro Foods and LPKF Laser.
Diversification Opportunities for Ebro Foods and LPKF Laser
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Ebro and LPKF is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Ebro Foods 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 Ebro Foods 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 Ebro Foods 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 Ebro Foods i.e., Ebro Foods and LPKF Laser go up and down completely randomly.
Pair Corralation between Ebro Foods and LPKF Laser
Assuming the 90 days trading horizon Ebro Foods is expected to generate 0.34 times more return on investment than LPKF Laser. However, Ebro Foods is 2.97 times less risky than LPKF Laser. It trades about -0.01 of its potential returns per unit of risk. LPKF Laser Electronics is currently generating about -0.2 per unit of risk. If you would invest 1,818 in Ebro Foods on September 10, 2025 and sell it today you would lose (16.00) from holding Ebro Foods or give up 0.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ebro Foods vs. LPKF Laser Electronics
Performance |
| Timeline |
| Ebro Foods |
| LPKF Laser Electronics |
Ebro Foods and LPKF Laser Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ebro Foods and LPKF Laser
The main advantage of trading using opposite Ebro Foods and LPKF Laser positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ebro Foods 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.| Ebro Foods vs. Martin Marietta Materials | Ebro Foods vs. Software Circle plc | Ebro Foods vs. International Biotechnology Trust | Ebro Foods vs. DXC Technology Co |
| LPKF Laser vs. Abeona Therapeutics | LPKF Laser vs. Roadside Real Estate | LPKF Laser vs. Power Metal Resources | LPKF Laser vs. Tamburi Investment Partners |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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