Correlation Between Lucid Diagnostics and TriSalus Life

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

By analyzing existing cross correlation between Lucid Diagnostics and TriSalus Life Sciences, you can compare the effects of market volatilities on Lucid Diagnostics and TriSalus Life 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 Lucid Diagnostics with a short position of TriSalus Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lucid Diagnostics and TriSalus Life.

Diversification Opportunities for Lucid Diagnostics and TriSalus Life

0.35

Correlation Coefficient

Lucid Diagnostics  TriSalus Life

Weak diversification

The 3 months correlation between Lucid and TriSalus is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Lucid Diagnostics and TriSalus Life Sciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TriSalus Life Sciences and Lucid Diagnostics 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 Lucid Diagnostics are associated (or correlated) with TriSalus Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TriSalus Life Sciences has no effect on the direction of Lucid Diagnostics i.e., Lucid Diagnostics and TriSalus Life go up and down completely randomly.

Pair Corralation between Lucid Diagnostics and TriSalus Life

Given the investment horizon of 90 days Lucid Diagnostics is expected to generate 0.29 times more return on investment than TriSalus Life. However, Lucid Diagnostics is 3.43 times less risky than TriSalus Life. It trades about 0.04 of its potential returns per unit of risk. TriSalus Life Sciences is currently generating about -0.06 per unit of risk. If you would invest  81.00  in Lucid Diagnostics on October 9, 2024 and sell it today you would earn a total of  1.00  from holding Lucid Diagnostics or generate 1.23% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	95.0%
Values	Daily Returns

Lucid Diagnostics  vs.  TriSalus Life Sciences

Lucid Diagnostics

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Lucid Diagnostics are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound fundamental indicators, Lucid Diagnostics is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.

TriSalus Life Sciences

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days TriSalus Life Sciences has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's forward indicators remain fairly stable which may send shares a bit higher in February 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Pair Trading with Lucid Diagnostics and TriSalus Life

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

The idea behind Lucid Diagnostics and TriSalus Life Sciences 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 Stocks Directory module to find actively traded stocks across global markets.