Correlation Between Sobr Safe and NLIGHT
Can any of the company-specific risk be diversified away by investing in both Sobr Safe and NLIGHT 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 Sobr Safe and NLIGHT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sobr Safe and nLIGHT Inc, you can compare the effects of market volatilities on Sobr Safe and NLIGHT 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 Sobr Safe with a short position of NLIGHT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sobr Safe and NLIGHT.
Diversification Opportunities for Sobr Safe and NLIGHT
Excellent diversification
The 3 months correlation between Sobr and NLIGHT is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Sobr Safe and nLIGHT Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on nLIGHT Inc and Sobr Safe 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 Sobr Safe are associated (or correlated) with NLIGHT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of nLIGHT Inc has no effect on the direction of Sobr Safe i.e., Sobr Safe and NLIGHT go up and down completely randomly.
Pair Corralation between Sobr Safe and NLIGHT
Given the investment horizon of 90 days Sobr Safe is expected to generate 1.95 times less return on investment than NLIGHT. In addition to that, Sobr Safe is 1.56 times more volatile than nLIGHT Inc. It trades about 0.06 of its total potential returns per unit of risk. nLIGHT Inc is currently generating about 0.19 per unit of volatility. If you would invest 1,897 in nLIGHT Inc on July 7, 2025 and sell it today you would earn a total of 1,188 from holding nLIGHT Inc or generate 62.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sobr Safe vs. nLIGHT Inc
Performance |
| Timeline |
| Sobr Safe |
| nLIGHT Inc |
Sobr Safe and NLIGHT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sobr Safe and NLIGHT
The main advantage of trading using opposite Sobr Safe and NLIGHT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sobr Safe position performs unexpectedly, NLIGHT 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 NLIGHT will offset losses from the drop in NLIGHT's long position.| Sobr Safe vs. AERWINS Technologies | Sobr Safe vs. bioAffinity Technologies, | Sobr Safe vs. Blacksky Technology | Sobr Safe vs. Intelligent Living Application |
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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