Correlation Between Laster Tech and Amulaire Thermal

Can any of the company-specific risk be diversified away by investing in both Laster Tech and Amulaire Thermal 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 Laster Tech and Amulaire Thermal into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Laster Tech Corp and Amulaire Thermal Technology, you can compare the effects of market volatilities on Laster Tech and Amulaire Thermal 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 Laster Tech with a short position of Amulaire Thermal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Laster Tech and Amulaire Thermal.

Diversification Opportunities for Laster Tech and Amulaire Thermal

0.0

Correlation Coefficient

Laster Tech  Amulaire Thermal

Pay attention - limited upside

The 3 months correlation between Laster and Amulaire is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Laster Tech Corp and Amulaire Thermal Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amulaire Thermal Tec and Laster Tech 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 Laster Tech Corp are associated (or correlated) with Amulaire Thermal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amulaire Thermal Tec has no effect on the direction of Laster Tech i.e., Laster Tech and Amulaire Thermal go up and down completely randomly.

Pair Corralation between Laster Tech and Amulaire Thermal

If you would invest (100.00) in Laster Tech Corp on August 31, 2024 and sell it today you would earn a total of  100.00  from holding Laster Tech Corp or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Laster Tech Corp  vs.  Amulaire Thermal Technology

Laster Tech Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Laster Tech Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Laster Tech is not utilizing all of its potentials. The current stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Amulaire Thermal Tec

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Amulaire Thermal Technology has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of abnormal performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in December 2024. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Pair Trading with Laster Tech and Amulaire Thermal

The main advantage of trading using opposite Laster Tech and Amulaire Thermal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Laster Tech position performs unexpectedly, Amulaire Thermal 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 Amulaire Thermal will offset losses from the drop in Amulaire Thermal's long position.

The idea behind Laster Tech Corp and Amulaire Thermal Technology pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.