Correlation Between First Republic and LENSAR
Can any of the company-specific risk be diversified away by investing in both First Republic 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 First Republic and LENSAR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First Republic Bank and LENSAR Inc, you can compare the effects of market volatilities on First Republic 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 First Republic with a short position of LENSAR. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Republic and LENSAR.
Diversification Opportunities for First Republic and LENSAR
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between First and LENSAR is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding First Republic Bank and LENSAR Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LENSAR Inc and First Republic 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 First Republic Bank 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 First Republic i.e., First Republic and LENSAR go up and down completely randomly.
Pair Corralation between First Republic and LENSAR
If you would invest 446.00 in LENSAR Inc on December 4, 2024 and sell it today you would earn a total of 902.00 from holding LENSAR Inc or generate 202.24% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
First Republic Bank vs. LENSAR Inc
Performance |
Timeline |
First Republic Bank |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
LENSAR Inc |
First Republic and LENSAR Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with First Republic and LENSAR
The main advantage of trading using opposite First Republic and LENSAR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Republic 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.First Republic vs. Allient | First Republic vs. Patterson UTI Energy | First Republic vs. Helmerich and Payne | First Republic vs. Amkor Technology |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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