Correlation Between CompuLab and Photomyne

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

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

Diversification Opportunities for CompuLab and Photomyne

0.67

Correlation Coefficient

CompuLab  Photomyne

Poor diversification

The 3 months correlation between CompuLab and Photomyne is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding CompuLab and Photomyne in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Photomyne and CompuLab 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 CompuLab are associated (or correlated) with Photomyne. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Photomyne has no effect on the direction of CompuLab i.e., CompuLab and Photomyne go up and down completely randomly.

Pair Corralation between CompuLab and Photomyne

Assuming the 90 days trading horizon CompuLab is expected to generate 1.67 times more return on investment than Photomyne. However, CompuLab is 1.67 times more volatile than Photomyne. It trades about 0.02 of its potential returns per unit of risk. Photomyne is currently generating about -0.12 per unit of risk. If you would invest  101,900  in CompuLab on August 27, 2025 and sell it today you would earn a total of  1,600  from holding CompuLab or generate 1.57% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

CompuLab  vs.  Photomyne

CompuLab

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in CompuLab are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, CompuLab is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Photomyne

Risk-Adjusted Performance

Weakest

Over the last 90 days Photomyne has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in December 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with CompuLab and Photomyne

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

The idea behind CompuLab and Photomyne 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..