Correlation Between NLIGHT and Corsair Gaming
Can any of the company-specific risk be diversified away by investing in both NLIGHT and Corsair Gaming 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 NLIGHT and Corsair Gaming into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between nLIGHT Inc and Corsair Gaming, you can compare the effects of market volatilities on NLIGHT and Corsair Gaming 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 NLIGHT with a short position of Corsair Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of NLIGHT and Corsair Gaming.
Diversification Opportunities for NLIGHT and Corsair Gaming
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between NLIGHT and Corsair is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding nLIGHT Inc and Corsair Gaming in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Corsair Gaming and NLIGHT 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 nLIGHT Inc are associated (or correlated) with Corsair Gaming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Corsair Gaming has no effect on the direction of NLIGHT i.e., NLIGHT and Corsair Gaming go up and down completely randomly.
Pair Corralation between NLIGHT and Corsair Gaming
Given the investment horizon of 90 days nLIGHT Inc is expected to generate 1.88 times more return on investment than Corsair Gaming. However, NLIGHT is 1.88 times more volatile than Corsair Gaming. It trades about 0.23 of its potential returns per unit of risk. Corsair Gaming is currently generating about 0.0 per unit of risk. If you would invest 1,548 in nLIGHT Inc on May 27, 2025 and sell it today you would earn a total of 1,310 from holding nLIGHT Inc or generate 84.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
nLIGHT Inc vs. Corsair Gaming
Performance |
| Timeline |
| nLIGHT Inc |
| Corsair Gaming |
NLIGHT and Corsair Gaming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NLIGHT and Corsair Gaming
The main advantage of trading using opposite NLIGHT and Corsair Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NLIGHT position performs unexpectedly, Corsair Gaming 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 Corsair Gaming will offset losses from the drop in Corsair Gaming's long position.The idea behind nLIGHT Inc and Corsair Gaming pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Corsair Gaming vs. Clover Health Investments | Corsair Gaming vs. Fubotv Inc | Corsair Gaming vs. Skillz Platform |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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