Correlation Between LENSAR and Talis Biomedical

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

By analyzing existing cross correlation between LENSAR Inc and Talis Biomedical Corp, you can compare the effects of market volatilities on LENSAR and Talis Biomedical 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 Talis Biomedical. Check out your portfolio center. Please also check ongoing floating volatility patterns of LENSAR and Talis Biomedical.

Diversification Opportunities for LENSAR and Talis Biomedical

0.0

Correlation Coefficient

LENSAR  Talis Biomedical

Pay attention - limited upside

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

Pair Corralation between LENSAR and Talis Biomedical

If you would invest  866.00  in LENSAR Inc on December 28, 2024 and sell it today you would earn a total of  548.00  from holding LENSAR Inc or generate 63.28% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

LENSAR Inc  vs.  Talis Biomedical Corp

LENSAR Inc

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in LENSAR Inc are ranked lower than 12 (%) 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.

Talis Biomedical Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Talis Biomedical Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable forward indicators, Talis Biomedical is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with LENSAR and Talis Biomedical

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

The idea behind LENSAR Inc and Talis Biomedical Corp 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.

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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.