Correlation Between Lightwave Logic and Graphjet Technology
Can any of the company-specific risk be diversified away by investing in both Lightwave Logic and Graphjet Technology 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 Lightwave Logic and Graphjet Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lightwave Logic and Graphjet Technology, you can compare the effects of market volatilities on Lightwave Logic and Graphjet Technology 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 Lightwave Logic with a short position of Graphjet Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lightwave Logic and Graphjet Technology.
Diversification Opportunities for Lightwave Logic and Graphjet Technology
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Lightwave and Graphjet is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Lightwave Logic and Graphjet Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Graphjet Technology and Lightwave Logic 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 Lightwave Logic are associated (or correlated) with Graphjet Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Graphjet Technology has no effect on the direction of Lightwave Logic i.e., Lightwave Logic and Graphjet Technology go up and down completely randomly.
Pair Corralation between Lightwave Logic and Graphjet Technology
Given the investment horizon of 90 days Lightwave Logic is expected to generate 0.46 times more return on investment than Graphjet Technology. However, Lightwave Logic is 2.2 times less risky than Graphjet Technology. It trades about 0.08 of its potential returns per unit of risk. Graphjet Technology is currently generating about -0.11 per unit of risk. If you would invest 371.00 in Lightwave Logic on August 28, 2025 and sell it today you would earn a total of 78.00 from holding Lightwave Logic or generate 21.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Lightwave Logic vs. Graphjet Technology
Performance |
| Timeline |
| Lightwave Logic |
| Graphjet Technology |
Lightwave Logic and Graphjet Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lightwave Logic and Graphjet Technology
The main advantage of trading using opposite Lightwave Logic and Graphjet Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lightwave Logic position performs unexpectedly, Graphjet Technology 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 Graphjet Technology will offset losses from the drop in Graphjet Technology's long position.| Lightwave Logic vs. CarsalesCom Ltd ADR | Lightwave Logic vs. Motorcar Parts of | Lightwave Logic vs. Cars Inc | Lightwave Logic vs. H2O Retailing |
| Graphjet Technology vs. Australian Agricultural | Graphjet Technology vs. Rheon Automatic Machinery | Graphjet Technology vs. BOS Better Online | Graphjet Technology vs. Future Farm Technologies |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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