Correlation Between 37940XAN2 and LENSAR

Can any of the company-specific risk be diversified away by investing in both 37940XAN2 and LENSAR 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 37940XAN2 and LENSAR into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between GPN 53 15 AUG 29 and LENSAR Inc, you can compare the effects of market volatilities on 37940XAN2 and LENSAR 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 37940XAN2 with a short position of LENSAR. Check out your portfolio center. Please also check ongoing floating volatility patterns of 37940XAN2 and LENSAR.

Diversification Opportunities for 37940XAN2 and LENSAR

-0.84

Correlation Coefficient

37940XAN2  LENSAR

Pay attention - limited upside

The 3 months correlation between 37940XAN2 and LENSAR is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding GPN 53 15 AUG 29 and LENSAR Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LENSAR Inc and 37940XAN2 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 GPN 53 15 AUG 29 are associated (or correlated) with LENSAR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LENSAR Inc has no effect on the direction of 37940XAN2 i.e., 37940XAN2 and LENSAR go up and down completely randomly.

Pair Corralation between 37940XAN2 and LENSAR

Assuming the 90 days trading horizon GPN 53 15 AUG 29 is expected to under-perform the LENSAR. But the bond apears to be less risky and, when comparing its historical volatility, GPN 53 15 AUG 29 is 9.95 times less risky than LENSAR. The bond trades about -0.15 of its potential returns per unit of risk. The LENSAR Inc is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest  443.00  in LENSAR Inc on September 4, 2024 and sell it today you would earn a total of  312.00  from holding LENSAR Inc or generate 70.43% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	95.31%
Values	Daily Returns

GPN 53 15 AUG 29  vs.  LENSAR Inc

GPN 53 15

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days GPN 53 15 AUG 29 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, 37940XAN2 is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

LENSAR Inc

Risk-Adjusted Performance

15 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in LENSAR Inc are ranked lower than 15 (%) 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.

Pair Trading with 37940XAN2 and LENSAR

The main advantage of trading using opposite 37940XAN2 and LENSAR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 37940XAN2 position performs unexpectedly, LENSAR 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 LENSAR will offset losses from the drop in LENSAR's long position.

The idea behind GPN 53 15 AUG 29 and LENSAR Inc 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.