Correlation Between ClearOne and NLIGHT
Can any of the company-specific risk be diversified away by investing in both ClearOne and NLIGHT 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 ClearOne and NLIGHT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ClearOne and nLIGHT Inc, you can compare the effects of market volatilities on ClearOne and NLIGHT 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 ClearOne with a short position of NLIGHT. Check out your portfolio center. Please also check ongoing floating volatility patterns of ClearOne and NLIGHT.
Diversification Opportunities for ClearOne and NLIGHT
Very good diversification
The 3 months correlation between ClearOne and NLIGHT is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding ClearOne and nLIGHT Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on nLIGHT Inc and ClearOne 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 ClearOne are associated (or correlated) with NLIGHT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of nLIGHT Inc has no effect on the direction of ClearOne i.e., ClearOne and NLIGHT go up and down completely randomly.
Pair Corralation between ClearOne and NLIGHT
Given the investment horizon of 90 days ClearOne is expected to generate 79.67 times less return on investment than NLIGHT. In addition to that, ClearOne is 2.63 times more volatile than nLIGHT Inc. It trades about 0.0 of its total potential returns per unit of risk. nLIGHT Inc is currently generating about 0.24 per unit of volatility. If you would invest 1,557 in nLIGHT Inc on May 29, 2025 and sell it today you would earn a total of 1,353 from holding nLIGHT Inc or generate 86.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ClearOne vs. nLIGHT Inc
Performance |
| Timeline |
| ClearOne |
| nLIGHT Inc |
ClearOne and NLIGHT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ClearOne and NLIGHT
The main advantage of trading using opposite ClearOne and NLIGHT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ClearOne position performs unexpectedly, NLIGHT 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 NLIGHT will offset losses from the drop in NLIGHT's long position.| ClearOne vs. Siyata Mobile | ClearOne vs. Mobilicom Limited American | ClearOne vs. Yunhong Green CTI | ClearOne vs. Frequency Electronics |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |