Correlation Between LightPath Technologies and PARKSON Retail

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

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

Diversification Opportunities for LightPath Technologies and PARKSON Retail

0.0

Correlation Coefficient

LightPath Technologies  PARKSON Retail

Pay attention - limited upside

The 3 months correlation between LightPath and PARKSON is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding LightPath Technologies and PARKSON Retail Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PARKSON Retail 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 PARKSON Retail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PARKSON Retail Group has no effect on the direction of LightPath Technologies i.e., LightPath Technologies and PARKSON Retail go up and down completely randomly.

Pair Corralation between LightPath Technologies and PARKSON Retail

If you would invest  531.00  in LightPath Technologies on September 8, 2025 and sell it today you would earn a total of  349.00  from holding LightPath Technologies or generate 65.73% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

LightPath Technologies  vs.  PARKSON Retail Group

LightPath Technologies

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in LightPath Technologies are ranked lower than 10 (%) 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.

PARKSON Retail Group

Risk-Adjusted Performance

Weakest

Over the last 90 days PARKSON Retail Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong technical and fundamental indicators, PARKSON Retail is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with LightPath Technologies and PARKSON Retail

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

The idea behind LightPath Technologies and PARKSON Retail 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.