Correlation Between Heartbeam and LENSAR
Can any of the company-specific risk be diversified away by investing in both Heartbeam 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 Heartbeam and LENSAR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Heartbeam and LENSAR Inc, you can compare the effects of market volatilities on Heartbeam 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 Heartbeam with a short position of LENSAR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Heartbeam and LENSAR.
Diversification Opportunities for Heartbeam and LENSAR
Poor diversification
The 3 months correlation between Heartbeam and LENSAR is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Heartbeam and LENSAR Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LENSAR Inc and Heartbeam 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 Heartbeam 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 Heartbeam i.e., Heartbeam and LENSAR go up and down completely randomly.
Pair Corralation between Heartbeam and LENSAR
Given the investment horizon of 90 days Heartbeam is expected to generate 4.74 times less return on investment than LENSAR. In addition to that, Heartbeam is 1.23 times more volatile than LENSAR Inc. It trades about 0.01 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 317.00 in LENSAR Inc on August 25, 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 | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Heartbeam vs. LENSAR Inc
Performance |
| Timeline |
| Heartbeam |
| LENSAR Inc |
Heartbeam and LENSAR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Heartbeam and LENSAR
The main advantage of trading using opposite Heartbeam and LENSAR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Heartbeam 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.| Heartbeam vs. FOXO Technologies | Heartbeam vs. EUDA Health Holdings | Heartbeam vs. Nutex Health | Heartbeam vs. Healthcare Triangle |
| 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |