Correlation Between Clearvue Technologies and LSI Industries

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

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

Diversification Opportunities for Clearvue Technologies and LSI Industries

0.47

Correlation Coefficient

Clearvue Technologies  LSI Industries

Very weak diversification

The 3 months correlation between Clearvue and LSI is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Clearvue Technologies and LSI Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LSI Industries and Clearvue 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 Clearvue Technologies are associated (or correlated) with LSI Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LSI Industries has no effect on the direction of Clearvue Technologies i.e., Clearvue Technologies and LSI Industries go up and down completely randomly.

Pair Corralation between Clearvue Technologies and LSI Industries

Assuming the 90 days trading horizon Clearvue Technologies is expected to under-perform the LSI Industries. In addition to that, Clearvue Technologies is 2.28 times more volatile than LSI Industries. It trades about -0.08 of its total potential returns per unit of risk. LSI Industries is currently generating about -0.16 per unit of volatility. If you would invest  2,305  in LSI Industries on August 26, 2025 and sell it today you would lose (509.00) from holding LSI Industries or give up 22.08% of portfolio value over 90 days.

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

Clearvue Technologies  vs.  LSI Industries

Clearvue Technologies

Risk-Adjusted Performance

Weakest

Over the last 90 days Clearvue Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in December 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

LSI Industries

Risk-Adjusted Performance

Weakest

Over the last 90 days LSI Industries has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in December 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Clearvue Technologies and LSI Industries

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

The idea behind Clearvue Technologies and LSI Industries 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.