Correlation Between LightPath Technologies and Identiv

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

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

Diversification Opportunities for LightPath Technologies and Identiv

0.49

Correlation Coefficient

LightPath Technologies  Identiv

Very weak diversification

The 3 months correlation between LightPath and Identiv is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding LightPath Technologies and Identiv in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Identiv 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 Identiv. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Identiv has no effect on the direction of LightPath Technologies i.e., LightPath Technologies and Identiv go up and down completely randomly.

Pair Corralation between LightPath Technologies and Identiv

Given the investment horizon of 90 days LightPath Technologies is expected to generate 1.67 times more return on investment than Identiv. However, LightPath Technologies is 1.67 times more volatile than Identiv. It trades about 0.15 of its potential returns per unit of risk. Identiv is currently generating about 0.08 per unit of risk. If you would invest  255.00  in LightPath Technologies on May 16, 2025 and sell it today you would earn a total of  110.00  from holding LightPath Technologies or generate 43.14% return on investment over 90 days.

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

LightPath Technologies  vs.  Identiv

LightPath Technologies

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in LightPath Technologies are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite fairly weak basic indicators, LightPath Technologies demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Identiv

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Identiv are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady basic indicators, Identiv exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with LightPath Technologies and Identiv

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

The idea behind LightPath Technologies and Identiv 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.

Check out your portfolio center.

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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.