Correlation Between Lightwave Logic and Nexa Resources
Can any of the company-specific risk be diversified away by investing in both Lightwave Logic and Nexa Resources 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 Nexa Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lightwave Logic and Nexa Resources SA, you can compare the effects of market volatilities on Lightwave Logic and Nexa Resources 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 Nexa Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lightwave Logic and Nexa Resources.
Diversification Opportunities for Lightwave Logic and Nexa Resources
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Lightwave and Nexa is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Lightwave Logic and Nexa Resources SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nexa Resources SA 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 Nexa Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nexa Resources SA has no effect on the direction of Lightwave Logic i.e., Lightwave Logic and Nexa Resources go up and down completely randomly.
Pair Corralation between Lightwave Logic and Nexa Resources
Given the investment horizon of 90 days Lightwave Logic is expected to generate 2.88 times more return on investment than Nexa Resources. However, Lightwave Logic is 2.88 times more volatile than Nexa Resources SA. It trades about 0.16 of its potential returns per unit of risk. Nexa Resources SA is currently generating about 0.17 per unit of risk. If you would invest 239.00 in Lightwave Logic on August 22, 2025 and sell it today you would earn a total of 214.00 from holding Lightwave Logic or generate 89.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lightwave Logic vs. Nexa Resources SA
Performance |
| Timeline |
| Lightwave Logic |
| Nexa Resources SA |
Lightwave Logic and Nexa Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lightwave Logic and Nexa Resources
The main advantage of trading using opposite Lightwave Logic and Nexa Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lightwave Logic position performs unexpectedly, Nexa Resources 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 Nexa Resources will offset losses from the drop in Nexa Resources' long position.| Lightwave Logic vs. Green Plains Renewable | Lightwave Logic vs. Gevo Inc | Lightwave Logic vs. Kronos Worldwide | Lightwave Logic vs. Koppers Holdings |
| Nexa Resources vs. Standard Lithium | Nexa Resources vs. Compass Minerals International | Nexa Resources vs. Lithium Argentina AG | Nexa Resources vs. Trilogy Metals |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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