Correlation Between LGL and Mind Technology

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

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

Diversification Opportunities for LGL and Mind Technology

0.62

Correlation Coefficient

LGL  Mind Technology

Poor diversification

The 3 months correlation between LGL and Mind is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding LGL Group and Mind Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mind Technology and LGL 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 LGL Group are associated (or correlated) with Mind Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mind Technology has no effect on the direction of LGL i.e., LGL and Mind Technology go up and down completely randomly.

Pair Corralation between LGL and Mind Technology

Considering the 90-day investment horizon LGL Group is expected to generate 0.45 times more return on investment than Mind Technology. However, LGL Group is 2.2 times less risky than Mind Technology. It trades about 0.04 of its potential returns per unit of risk. Mind Technology is currently generating about 0.0 per unit of risk. If you would invest  480.00  in LGL Group on May 4, 2025 and sell it today you would earn a total of  216.00  from holding LGL Group or generate 45.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	99.8%
Values	Daily Returns

LGL Group  vs.  Mind Technology

LGL Group

Risk-Adjusted Performance

Very Weak

Over the last 90 days LGL Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent technical and fundamental indicators, LGL is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Mind Technology

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Mind Technology are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of rather fragile basic indicators, Mind Technology exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with LGL and Mind Technology

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

The idea behind LGL Group and Mind 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.