Correlation Between Hyster Yale and Lightwave Logic
Can any of the company-specific risk be diversified away by investing in both Hyster Yale and Lightwave Logic 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 Hyster Yale and Lightwave Logic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hyster Yale Materials Handling and Lightwave Logic, you can compare the effects of market volatilities on Hyster Yale and Lightwave Logic 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 Hyster Yale with a short position of Lightwave Logic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hyster Yale and Lightwave Logic.
Diversification Opportunities for Hyster Yale and Lightwave Logic
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Hyster and Lightwave is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Hyster Yale Materials Handling and Lightwave Logic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lightwave Logic and Hyster Yale 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 Hyster Yale Materials Handling are associated (or correlated) with Lightwave Logic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lightwave Logic has no effect on the direction of Hyster Yale i.e., Hyster Yale and Lightwave Logic go up and down completely randomly.
Pair Corralation between Hyster Yale and Lightwave Logic
Allowing for the 90-day total investment horizon Hyster Yale Materials Handling is expected to under-perform the Lightwave Logic. But the stock apears to be less risky and, when comparing its historical volatility, Hyster Yale Materials Handling is 2.19 times less risky than Lightwave Logic. The stock trades about -0.04 of its potential returns per unit of risk. The Lightwave Logic is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 307.00 in Lightwave Logic on September 11, 2025 and sell it today you would earn a total of 105.00 from holding Lightwave Logic or generate 34.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.44% |
| Values | Daily Returns |
Hyster Yale Materials Handling vs. Lightwave Logic
Performance |
| Timeline |
| Hyster Yale Materials |
| Lightwave Logic |
Hyster Yale and Lightwave Logic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hyster Yale and Lightwave Logic
The main advantage of trading using opposite Hyster Yale and Lightwave Logic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hyster Yale position performs unexpectedly, Lightwave Logic 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 Lightwave Logic will offset losses from the drop in Lightwave Logic's long position.| Hyster Yale vs. Putnam Focused Large | Hyster Yale vs. Alcoa Corp | Hyster Yale vs. Procter Gamble | Hyster Yale vs. McDonalds |
| Lightwave Logic vs. Green Plains Renewable | Lightwave Logic vs. Gevo Inc | Lightwave Logic vs. Kronos Worldwide | Lightwave Logic vs. Koppers Holdings |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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