Correlation Between Allient and LightPath Technologies
Can any of the company-specific risk be diversified away by investing in both Allient and LightPath Technologies 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 Allient and LightPath Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Allient and LightPath Technologies, you can compare the effects of market volatilities on Allient and LightPath Technologies 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 Allient with a short position of LightPath Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allient and LightPath Technologies.
Diversification Opportunities for Allient and LightPath Technologies
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Allient and LightPath is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Allient and LightPath Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LightPath Technologies and Allient 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 Allient are associated (or correlated) with LightPath Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LightPath Technologies has no effect on the direction of Allient i.e., Allient and LightPath Technologies go up and down completely randomly.
Pair Corralation between Allient and LightPath Technologies
Given the investment horizon of 90 days Allient is expected to generate 1.9 times less return on investment than LightPath Technologies. But when comparing it to its historical volatility, Allient is 2.18 times less risky than LightPath Technologies. It trades about 0.25 of its potential returns per unit of risk. LightPath Technologies is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 299.00 in LightPath Technologies on June 6, 2025 and sell it today you would earn a total of 273.00 from holding LightPath Technologies or generate 91.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Allient vs. LightPath Technologies
Performance |
| Timeline |
| Allient |
| LightPath Technologies |
Allient and LightPath Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allient and LightPath Technologies
The main advantage of trading using opposite Allient and LightPath Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allient position performs unexpectedly, LightPath Technologies 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 LightPath Technologies will offset losses from the drop in LightPath Technologies' long position.| Allient vs. National Vision Holdings | Allient vs. Getty Realty | Allient vs. Academy Sports Outdoors | Allient vs. Scandinavian Tobacco Group |
| LightPath Technologies vs. Bel Fuse A | LightPath Technologies vs. Cemtrex | LightPath Technologies vs. CTS Corporation | LightPath Technologies vs. MicroCloud Hologram |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |