Correlation Between ATRION and LeMaitre Vascular
Can any of the company-specific risk be diversified away by investing in both ATRION 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 ATRION and LeMaitre Vascular into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ATRION and LeMaitre Vascular, you can compare the effects of market volatilities on ATRION 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 ATRION with a short position of LeMaitre Vascular. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATRION and LeMaitre Vascular.
Diversification Opportunities for ATRION and LeMaitre Vascular
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between ATRION and LeMaitre is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding ATRION and LeMaitre Vascular in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LeMaitre Vascular and ATRION 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 ATRION 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 ATRION i.e., ATRION and LeMaitre Vascular go up and down completely randomly.
Pair Corralation between ATRION and LeMaitre Vascular
If you would invest 8,718 in LeMaitre Vascular on August 28, 2024 and sell it today you would earn a total of 1,991 from holding LeMaitre Vascular or generate 22.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 0.0% |
| Values | Daily Returns |
ATRION vs. LeMaitre Vascular
Performance |
| Timeline |
| ATRION |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| LeMaitre Vascular |
ATRION and LeMaitre Vascular Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ATRION and LeMaitre Vascular
The main advantage of trading using opposite ATRION and LeMaitre Vascular positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATRION 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 ATRION 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.| LeMaitre Vascular vs. InfuSystems Holdings | LeMaitre Vascular vs. Pro Dex | LeMaitre Vascular vs. Utah Medical Products | LeMaitre Vascular vs. Milestone Scientific |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |