Correlation Between Opsens and LeMaitre Vascular

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

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

Diversification Opportunities for Opsens and LeMaitre Vascular

0.0

Correlation Coefficient

Opsens  LeMaitre Vascular

Pay attention - limited upside

The 3 months correlation between Opsens and LeMaitre is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Opsens Inc and LeMaitre Vascular in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LeMaitre Vascular and Opsens 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 Opsens Inc 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 Opsens i.e., Opsens and LeMaitre Vascular go up and down completely randomly.

Pair Corralation between Opsens and LeMaitre Vascular

If you would invest (100.00) in Opsens Inc on December 30, 2024 and sell it today you would earn a total of  100.00  from holding Opsens Inc or generate -100.0% return on investment over 90 days.

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

Opsens Inc  vs.  LeMaitre Vascular

Opsens Inc

Risk-Adjusted Performance

Very Weak

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

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 Opsens and LeMaitre Vascular

The main advantage of trading using opposite Opsens and LeMaitre Vascular positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Opsens 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 Opsens Inc 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.