Correlation Between Repro Med and LeMaitre Vascular

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

By analyzing existing cross correlation between Repro Med Systems and LeMaitre Vascular, you can compare the effects of market volatilities on Repro Med and LeMaitre Vascular 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 Repro Med with a short position of LeMaitre Vascular. Check out your portfolio center. Please also check ongoing floating volatility patterns of Repro Med and LeMaitre Vascular.

Diversification Opportunities for Repro Med and LeMaitre Vascular

0.79

Correlation Coefficient

Repro Med  LeMaitre Vascular

Poor diversification

The 3 months correlation between Repro and LeMaitre is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Repro Med Systems and LeMaitre Vascular in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LeMaitre Vascular and Repro Med 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 Repro Med Systems are associated (or correlated) with LeMaitre Vascular. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LeMaitre Vascular has no effect on the direction of Repro Med i.e., Repro Med and LeMaitre Vascular go up and down completely randomly.

Pair Corralation between Repro Med and LeMaitre Vascular

Given the investment horizon of 90 days Repro Med Systems is expected to under-perform the LeMaitre Vascular. In addition to that, Repro Med is 1.86 times more volatile than LeMaitre Vascular. It trades about -0.15 of its total potential returns per unit of risk. LeMaitre Vascular is currently generating about -0.07 per unit of volatility. If you would invest  9,272  in LeMaitre Vascular on December 29, 2024 and sell it today you would lose (967.00) from holding LeMaitre Vascular or give up 10.43% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Repro Med Systems  vs.  LeMaitre Vascular

Repro Med Systems

Risk-Adjusted Performance

Very Weak

Over the last 90 days Repro Med Systems has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's primary indicators remain rather sound which may send shares a bit higher in April 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

LeMaitre Vascular

Risk-Adjusted Performance

Very Weak

Over the last 90 days LeMaitre Vascular has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with Repro Med and LeMaitre Vascular

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

The idea behind Repro Med Systems and LeMaitre Vascular 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.