Correlation Between LightPath Technologies and BC Technology

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

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

Diversification Opportunities for LightPath Technologies and BC Technology

-0.68

Correlation Coefficient

LightPath Technologies  BC Technology

Excellent diversification

The 3 months correlation between LightPath and BCTCF is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding LightPath Technologies and BC Technology Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BC Technology Group and LightPath Technologies 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 LightPath Technologies are associated (or correlated) with BC Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BC Technology Group has no effect on the direction of LightPath Technologies i.e., LightPath Technologies and BC Technology go up and down completely randomly.

Pair Corralation between LightPath Technologies and BC Technology

Given the investment horizon of 90 days LightPath Technologies is expected to generate 10.18 times more return on investment than BC Technology. However, LightPath Technologies is 10.18 times more volatile than BC Technology Group. It trades about 0.09 of its potential returns per unit of risk. BC Technology Group is currently generating about -0.07 per unit of risk. If you would invest  544.00  in LightPath Technologies on August 28, 2025 and sell it today you would earn a total of  151.00  from holding LightPath Technologies or generate 27.76% return on investment over 90 days.

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

LightPath Technologies  vs.  BC Technology Group

LightPath Technologies

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in LightPath Technologies are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite fairly uncertain basic indicators, LightPath Technologies demonstrated solid returns over the last few months and may actually be approaching a breakup point.

BC Technology Group

Risk-Adjusted Performance

Weakest

Over the last 90 days BC Technology Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable fundamental indicators, BC Technology is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with LightPath Technologies and BC Technology

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

The idea behind LightPath Technologies and BC Technology Group 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..