Correlation Between LENSAR and 49327M3G7

Can any of the company-specific risk be diversified away by investing in both LENSAR and 49327M3G7 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 49327M3G7 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between LENSAR Inc and KEY 47 26 JAN 26, you can compare the effects of market volatilities on LENSAR and 49327M3G7 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 49327M3G7. Check out your portfolio center. Please also check ongoing floating volatility patterns of LENSAR and 49327M3G7.

Diversification Opportunities for LENSAR and 49327M3G7

-0.18

Correlation Coefficient

LENSAR  49327M3G7

Good diversification

The 3 months correlation between LENSAR and 49327M3G7 is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding LENSAR Inc and KEY 47 26 JAN 26 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KEY 47 26 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 49327M3G7. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KEY 47 26 has no effect on the direction of LENSAR i.e., LENSAR and 49327M3G7 go up and down completely randomly.

Pair Corralation between LENSAR and 49327M3G7

Given the investment horizon of 90 days LENSAR Inc is expected to generate 10.05 times more return on investment than 49327M3G7. However, LENSAR is 10.05 times more volatile than KEY 47 26 JAN 26. It trades about 0.17 of its potential returns per unit of risk. KEY 47 26 JAN 26 is currently generating about -0.1 per unit of risk. If you would invest  837.00  in LENSAR Inc on December 26, 2024 and sell it today you would earn a total of  580.00  from holding LENSAR Inc or generate 69.3% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	80.0%
Values	Daily Returns

LENSAR Inc  vs.  KEY 47 26 JAN 26

LENSAR Inc

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in LENSAR Inc are ranked lower than 13 (%) 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.

KEY 47 26

Risk-Adjusted Performance

Very Weak

Over the last 90 days KEY 47 26 JAN 26 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, 49327M3G7 is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with LENSAR and 49327M3G7

The main advantage of trading using opposite LENSAR and 49327M3G7 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LENSAR position performs unexpectedly, 49327M3G7 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 49327M3G7 will offset losses from the drop in 49327M3G7's long position.

The idea behind LENSAR Inc and KEY 47 26 JAN 26 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 Global Correlations module to find global opportunities by holding instruments from different markets.