Correlation Between Capgemini and Lasertec

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

By analyzing existing cross correlation between Capgemini SE and Lasertec, you can compare the effects of market volatilities on Capgemini and Lasertec 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 Capgemini with a short position of Lasertec. Check out your portfolio center. Please also check ongoing floating volatility patterns of Capgemini and Lasertec.

Diversification Opportunities for Capgemini and Lasertec

-0.25

Correlation Coefficient

Capgemini  Lasertec

Very good diversification

The 3 months correlation between Capgemini and Lasertec is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Capgemini SE and Lasertec in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lasertec and Capgemini 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 Capgemini SE are associated (or correlated) with Lasertec. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lasertec has no effect on the direction of Capgemini i.e., Capgemini and Lasertec go up and down completely randomly.

Pair Corralation between Capgemini and Lasertec

Assuming the 90 days horizon Capgemini SE is expected to under-perform the Lasertec. But the pink sheet apears to be less risky and, when comparing its historical volatility, Capgemini SE is 1.58 times less risky than Lasertec. The pink sheet trades about -0.08 of its potential returns per unit of risk. The Lasertec is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest  10,920  in Lasertec on May 21, 2025 and sell it today you would lose (1,208) from holding Lasertec or give up 11.06% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	96.83%
Values	Daily Returns

Capgemini SE  vs.  Lasertec

Capgemini SE

Risk-Adjusted Performance

Weakest

Over the last 90 days Capgemini SE has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest unfluctuating performance, the Stock's primary indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Lasertec

Risk-Adjusted Performance

Weakest

Over the last 90 days Lasertec has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Stock's fundamental indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Pair Trading with Capgemini and Lasertec

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

The idea behind Capgemini SE and Lasertec 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 Prophet module to use AI to generate optimal portfolios and find profitable investment opportunities.