Correlation Between Solid State and NLIGHT
Can any of the company-specific risk be diversified away by investing in both Solid State 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 Solid State and NLIGHT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Solid State Plc and nLIGHT Inc, you can compare the effects of market volatilities on Solid State 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 Solid State with a short position of NLIGHT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Solid State and NLIGHT.
Diversification Opportunities for Solid State and NLIGHT
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Solid and NLIGHT is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Solid State Plc and nLIGHT Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on nLIGHT Inc and Solid State 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 Solid State Plc 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 Solid State i.e., Solid State and NLIGHT go up and down completely randomly.
Pair Corralation between Solid State and NLIGHT
If you would invest 1,954 in nLIGHT Inc on July 20, 2025 and sell it today you would earn a total of 1,056 from holding nLIGHT Inc or generate 54.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 1.54% |
| Values | Daily Returns |
Solid State Plc vs. nLIGHT Inc
Performance |
| Timeline |
| Solid State Plc |
Risk-Adjusted Performance
Weakest
Weak | Strong |
| nLIGHT Inc |
Solid State and NLIGHT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Solid State and NLIGHT
The main advantage of trading using opposite Solid State and NLIGHT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Solid State 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.| Solid State vs. Southern Copper Corp | Solid State vs. Caledonia Mining | Solid State vs. Hecla Mining Co | Solid State vs. Silvercorp 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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