Correlation Between ICL Israel and LightPath Technologies
Can any of the company-specific risk be diversified away by investing in both ICL Israel 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 ICL Israel and LightPath Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ICL Israel Chemicals and LightPath Technologies, you can compare the effects of market volatilities on ICL Israel 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 ICL Israel with a short position of LightPath Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of ICL Israel and LightPath Technologies.
Diversification Opportunities for ICL Israel and LightPath Technologies
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ICL and LightPath is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding ICL Israel Chemicals and LightPath Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LightPath Technologies and ICL Israel 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 ICL Israel Chemicals 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 ICL Israel i.e., ICL Israel and LightPath Technologies go up and down completely randomly.
Pair Corralation between ICL Israel and LightPath Technologies
Considering the 90-day investment horizon ICL Israel Chemicals is expected to under-perform the LightPath Technologies. But the stock apears to be less risky and, when comparing its historical volatility, ICL Israel Chemicals is 2.75 times less risky than LightPath Technologies. The stock trades about 0.0 of its potential returns per unit of risk. The LightPath Technologies is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 301.00 in LightPath Technologies on May 31, 2025 and sell it today you would earn a total of 243.00 from holding LightPath Technologies or generate 80.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ICL Israel Chemicals vs. LightPath Technologies
Performance |
| Timeline |
| ICL Israel Chemicals |
| LightPath Technologies |
ICL Israel and LightPath Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ICL Israel and LightPath Technologies
The main advantage of trading using opposite ICL Israel and LightPath Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ICL Israel 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.| ICL Israel vs. Intrepid Potash | ICL Israel vs. American Vanguard | ICL Israel vs. CF Industries Holdings | ICL Israel vs. The Mosaic |
| 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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