Correlation Between Accelerate Diagnostics and LENSAR
Can any of the company-specific risk be diversified away by investing in both Accelerate Diagnostics and LENSAR 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 Accelerate Diagnostics and LENSAR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Accelerate Diagnostics and LENSAR Inc, you can compare the effects of market volatilities on Accelerate Diagnostics and LENSAR 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 Accelerate Diagnostics with a short position of LENSAR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Accelerate Diagnostics and LENSAR.
Diversification Opportunities for Accelerate Diagnostics and LENSAR
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Accelerate and LENSAR is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Accelerate Diagnostics and LENSAR Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LENSAR Inc and Accelerate Diagnostics 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 Accelerate Diagnostics are associated (or correlated) with LENSAR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LENSAR Inc has no effect on the direction of Accelerate Diagnostics i.e., Accelerate Diagnostics and LENSAR go up and down completely randomly.
Pair Corralation between Accelerate Diagnostics and LENSAR
Given the investment horizon of 90 days Accelerate Diagnostics is expected to under-perform the LENSAR. But the stock apears to be less risky and, when comparing its historical volatility, Accelerate Diagnostics is 1.19 times less risky than LENSAR. The stock trades about -0.15 of its potential returns per unit of risk. The LENSAR Inc is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 441.00 in LENSAR Inc on September 26, 2024 and sell it today you would earn a total of 440.00 from holding LENSAR Inc or generate 99.77% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Accelerate Diagnostics vs. LENSAR Inc
Performance |
Timeline |
Accelerate Diagnostics |
LENSAR Inc |
Accelerate Diagnostics and LENSAR Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Accelerate Diagnostics and LENSAR
The main advantage of trading using opposite Accelerate Diagnostics and LENSAR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Accelerate Diagnostics position performs unexpectedly, LENSAR 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 LENSAR will offset losses from the drop in LENSAR's long position.Accelerate Diagnostics vs. CVRx Inc | Accelerate Diagnostics vs. Neuropace | Accelerate Diagnostics vs. Anika Therapeutics | Accelerate Diagnostics vs. Axogen Inc |
LENSAR vs. Cigna Corp | LENSAR vs. Definitive Healthcare Corp | LENSAR vs. Guardant Health | LENSAR vs. Laboratory of |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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