Correlation Between 832248BD9 and LENSAR

Can any of the company-specific risk be diversified away by investing in both 832248BD9 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 832248BD9 and LENSAR into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between SFD 2625 13 SEP 31 and LENSAR Inc, you can compare the effects of market volatilities on 832248BD9 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 832248BD9 with a short position of LENSAR. Check out your portfolio center. Please also check ongoing floating volatility patterns of 832248BD9 and LENSAR.

Diversification Opportunities for 832248BD9 and LENSAR

0.62

Correlation Coefficient

832248BD9  LENSAR

Poor diversification

The 3 months correlation between 832248BD9 and LENSAR is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding SFD 2625 13 SEP 31 and LENSAR Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LENSAR Inc and 832248BD9 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 SFD 2625 13 SEP 31 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 832248BD9 i.e., 832248BD9 and LENSAR go up and down completely randomly.

Pair Corralation between 832248BD9 and LENSAR

If you would invest  445.00  in LENSAR Inc on October 3, 2024 and sell it today you would earn a total of  449.00  from holding LENSAR Inc or generate 100.9% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	0.0%
Values	Daily Returns

SFD 2625 13 SEP 31  vs.  LENSAR Inc

SFD 2625 13

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days SFD 2625 13 SEP 31 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, 832248BD9 is not utilizing all of its potentials. The new stock price disturbance, may contribute to short-term losses for the investors.

LENSAR Inc

Risk-Adjusted Performance

20 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in LENSAR Inc are ranked lower than 20 (%) 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 832248BD9 and LENSAR

The main advantage of trading using opposite 832248BD9 and LENSAR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 832248BD9 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 SFD 2625 13 SEP 31 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.