Correlation Between Kronos Worldwide and Lightwave Logic
Can any of the company-specific risk be diversified away by investing in both Kronos Worldwide 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 Kronos Worldwide and Lightwave Logic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kronos Worldwide and Lightwave Logic, you can compare the effects of market volatilities on Kronos Worldwide 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 Kronos Worldwide with a short position of Lightwave Logic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kronos Worldwide and Lightwave Logic.
Diversification Opportunities for Kronos Worldwide and Lightwave Logic
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Kronos and Lightwave is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Kronos Worldwide and Lightwave Logic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lightwave Logic and Kronos Worldwide 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 Kronos Worldwide 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 Kronos Worldwide i.e., Kronos Worldwide and Lightwave Logic go up and down completely randomly.
Pair Corralation between Kronos Worldwide and Lightwave Logic
Considering the 90-day investment horizon Kronos Worldwide is expected to under-perform the Lightwave Logic. But the stock apears to be less risky and, when comparing its historical volatility, Kronos Worldwide is 2.49 times less risky than Lightwave Logic. The stock trades about -0.09 of its potential returns per unit of risk. The Lightwave Logic is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 356.00 in Lightwave Logic on September 2, 2025 and sell it today you would earn a total of 78.00 from holding Lightwave Logic or generate 21.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kronos Worldwide vs. Lightwave Logic
Performance |
| Timeline |
| Kronos Worldwide |
| Lightwave Logic |
Kronos Worldwide and Lightwave Logic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kronos Worldwide and Lightwave Logic
The main advantage of trading using opposite Kronos Worldwide and Lightwave Logic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kronos Worldwide 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.| Kronos Worldwide vs. 51Talk Online Education | Kronos Worldwide vs. Global E Online | Kronos Worldwide vs. Arrow Financial | Kronos Worldwide vs. The Hanover Insurance |
| Lightwave Logic vs. Morgan Advanced Materials | Lightwave Logic vs. Yulong Eco Materials | Lightwave Logic vs. Golden Energy Offshore | Lightwave Logic vs. Hyster Yale Materials Handling |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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