Correlation Between 49327M3G7 and LENSAR

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

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

Diversification Opportunities for 49327M3G7 and LENSAR

-0.33

Correlation Coefficient

49327M3G7  LENSAR

Very good diversification

The 3 months correlation between 49327M3G7 and LENSAR is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding KEY 47 26 JAN 26 and LENSAR Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LENSAR Inc and 49327M3G7 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 KEY 47 26 JAN 26 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 49327M3G7 i.e., 49327M3G7 and LENSAR go up and down completely randomly.

Pair Corralation between 49327M3G7 and LENSAR

Assuming the 90 days trading horizon KEY 47 26 JAN 26 is expected to under-perform the LENSAR. But the bond apears to be less risky and, when comparing its historical volatility, KEY 47 26 JAN 26 is 5.86 times less risky than LENSAR. The bond trades about -0.11 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  533.00  in LENSAR Inc on October 22, 2024 and sell it today you would earn a total of  299.00  from holding LENSAR Inc or generate 56.1% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	70.97%
Values	Daily Returns

KEY 47 26 JAN 26  vs.  LENSAR Inc

KEY 47 26

Risk-Adjusted Performance

0 of 100

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 current stock price disturbance, may contribute to short-term losses for the investors.

LENSAR Inc

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in LENSAR Inc are ranked lower than 14 (%) 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 49327M3G7 and LENSAR

The main advantage of trading using opposite 49327M3G7 and LENSAR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 49327M3G7 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 KEY 47 26 JAN 26 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.