Correlation Between Sky Century and Lasertec

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

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

Diversification Opportunities for Sky Century and Lasertec

-0.41

Correlation Coefficient

Sky Century  Lasertec

Very good diversification

The 3 months correlation between Sky and Lasertec is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Sky Century Investment and Lasertec in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lasertec and Sky Century 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 Sky Century Investment are associated (or correlated) with Lasertec. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lasertec has no effect on the direction of Sky Century i.e., Sky Century and Lasertec go up and down completely randomly.

Pair Corralation between Sky Century and Lasertec

Given the investment horizon of 90 days Sky Century is expected to generate 6.13 times less return on investment than Lasertec. In addition to that, Sky Century is 3.48 times more volatile than Lasertec. It trades about 0.01 of its total potential returns per unit of risk. Lasertec is currently generating about 0.11 per unit of volatility. If you would invest  8,745  in Lasertec on May 5, 2025 and sell it today you would earn a total of  2,255  from holding Lasertec or generate 25.79% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.46%
Values	Daily Returns

Sky Century Investment  vs.  Lasertec

Sky Century Investment

Risk-Adjusted Performance

Very Weak

Over the last 90 days Sky Century Investment has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, Sky Century is not utilizing all of its potentials. The new stock price confusion, may contribute to short-horizon losses for the traders.

Lasertec

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Lasertec are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile fundamental indicators, Lasertec reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Sky Century and Lasertec

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

The idea behind Sky Century Investment and Lasertec 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.