Correlation Between LENSAR and ISS AS

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

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

Diversification Opportunities for LENSAR and ISS AS

0.0

Correlation Coefficient

LENSAR  ISS AS

Pay attention - limited upside

The 3 months correlation between LENSAR and ISS is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding LENSAR Inc and ISS AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ISS AS and LENSAR 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 LENSAR Inc are associated (or correlated) with ISS AS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ISS AS has no effect on the direction of LENSAR i.e., LENSAR and ISS AS go up and down completely randomly.

Pair Corralation between LENSAR and ISS AS

If you would invest  757.00  in LENSAR Inc on October 11, 2024 and sell it today you would earn a total of  78.00  from holding LENSAR Inc or generate 10.3% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	95.45%
Values	Daily Returns

LENSAR Inc  vs.  ISS AS

LENSAR Inc

Risk-Adjusted Performance

16 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in LENSAR Inc are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. Even with relatively uncertain basic indicators, LENSAR reported solid returns over the last few months and may actually be approaching a breakup point.

ISS AS

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ISS AS has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical and fundamental indicators, ISS AS is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with LENSAR and ISS AS

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

The idea behind LENSAR Inc and ISS AS 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.