Correlation Between Viomi Technology and LightPath Technologies
Can any of the company-specific risk be diversified away by investing in both Viomi Technology and LightPath Technologies 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 Viomi Technology and LightPath Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Viomi Technology ADR and LightPath Technologies, you can compare the effects of market volatilities on Viomi Technology and LightPath Technologies 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 Viomi Technology with a short position of LightPath Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Viomi Technology and LightPath Technologies.
Diversification Opportunities for Viomi Technology and LightPath Technologies
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Viomi and LightPath is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Viomi Technology ADR and LightPath Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LightPath Technologies and Viomi Technology 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 Viomi Technology ADR are associated (or correlated) with LightPath Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LightPath Technologies has no effect on the direction of Viomi Technology i.e., Viomi Technology and LightPath Technologies go up and down completely randomly.
Pair Corralation between Viomi Technology and LightPath Technologies
Given the investment horizon of 90 days Viomi Technology ADR is expected to generate 1.88 times more return on investment than LightPath Technologies. However, Viomi Technology is 1.88 times more volatile than LightPath Technologies. It trades about 0.2 of its potential returns per unit of risk. LightPath Technologies is currently generating about 0.21 per unit of risk. If you would invest 137.00 in Viomi Technology ADR on June 1, 2025 and sell it today you would earn a total of 213.00 from holding Viomi Technology ADR or generate 155.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Viomi Technology ADR vs. LightPath Technologies
Performance |
| Timeline |
| Viomi Technology ADR |
| LightPath Technologies |
Viomi Technology and LightPath Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Viomi Technology and LightPath Technologies
The main advantage of trading using opposite Viomi Technology and LightPath Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Viomi Technology position performs unexpectedly, LightPath Technologies 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 LightPath Technologies will offset losses from the drop in LightPath Technologies' long position.| Viomi Technology vs. Virco Manufacturing | Viomi Technology vs. Hamilton Beach Brands | Viomi Technology vs. Crown Crafts | Viomi Technology vs. Energy Focu |
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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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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