Correlation Between Aziyo Biologics and LENSAR
Can any of the company-specific risk be diversified away by investing in both Aziyo Biologics 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 Aziyo Biologics and LENSAR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aziyo Biologics and LENSAR Inc, you can compare the effects of market volatilities on Aziyo Biologics 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 Aziyo Biologics with a short position of LENSAR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aziyo Biologics and LENSAR.
Diversification Opportunities for Aziyo Biologics and LENSAR
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Aziyo and LENSAR is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Aziyo Biologics and LENSAR Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LENSAR Inc and Aziyo Biologics 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 Aziyo Biologics 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 Aziyo Biologics i.e., Aziyo Biologics and LENSAR go up and down completely randomly.
Pair Corralation between Aziyo Biologics and LENSAR
Given the investment horizon of 90 days Aziyo Biologics is expected to generate 2.0 times less return on investment than LENSAR. In addition to that, Aziyo Biologics is 1.53 times more volatile than LENSAR Inc. It trades about 0.02 of its total potential returns per unit of risk. LENSAR Inc is currently generating about 0.06 per unit of volatility. If you would invest 319.00 in LENSAR Inc on August 28, 2024 and sell it today you would earn a total of 417.00 from holding LENSAR Inc or generate 130.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 31.72% |
| Values | Daily Returns |
Aziyo Biologics vs. LENSAR Inc
Performance |
| Timeline |
| Aziyo Biologics |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| LENSAR Inc |
Aziyo Biologics and LENSAR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aziyo Biologics and LENSAR
The main advantage of trading using opposite Aziyo Biologics and LENSAR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aziyo Biologics 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.| Aziyo Biologics vs. Ainos Inc | Aziyo Biologics vs. SurModics | Aziyo Biologics vs. LENSAR Inc | Aziyo Biologics vs. IRIDEX |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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