Correlation Between Albertsons Companies and LENSAR
Can any of the company-specific risk be diversified away by investing in both Albertsons Companies 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 Albertsons Companies and LENSAR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Albertsons Companies and LENSAR Inc, you can compare the effects of market volatilities on Albertsons Companies 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 Albertsons Companies with a short position of LENSAR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Albertsons Companies and LENSAR.
Diversification Opportunities for Albertsons Companies and LENSAR
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Albertsons and LENSAR is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Albertsons Companies and LENSAR Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LENSAR Inc and Albertsons Companies 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 Albertsons Companies 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 Albertsons Companies i.e., Albertsons Companies and LENSAR go up and down completely randomly.
Pair Corralation between Albertsons Companies and LENSAR
Considering the 90-day investment horizon Albertsons Companies is expected to under-perform the LENSAR. But the stock apears to be less risky and, when comparing its historical volatility, Albertsons Companies is 5.21 times less risky than LENSAR. The stock trades about 0.0 of its potential returns per unit of risk. The LENSAR Inc is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 317.00 in LENSAR Inc on August 26, 2024 and sell it today you would earn a total of 421.00 from holding LENSAR Inc or generate 132.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Albertsons Companies vs. LENSAR Inc
Performance |
| Timeline |
| Albertsons Companies |
| LENSAR Inc |
Albertsons Companies and LENSAR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Albertsons Companies and LENSAR
The main advantage of trading using opposite Albertsons Companies and LENSAR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Albertsons Companies 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.| Albertsons Companies vs. Hf Foods Group | Albertsons Companies vs. Innovative Food Hldg | Albertsons Companies vs. Calavo Growers | Albertsons Companies vs. The Chefs Warehouse |
| LENSAR vs. Heartbeam | LENSAR vs. EUDA Health Holdings | LENSAR vs. Nutex Health | LENSAR vs. Healthcare Triangle |
Check out your portfolio center.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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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