Correlation Between BioLife Sciences and LeMaitre Vascular
Can any of the company-specific risk be diversified away by investing in both BioLife Sciences 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 BioLife Sciences and LeMaitre Vascular into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BioLife Sciences and LeMaitre Vascular, you can compare the effects of market volatilities on BioLife Sciences 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 BioLife Sciences with a short position of LeMaitre Vascular. Check out your portfolio center. Please also check ongoing floating volatility patterns of BioLife Sciences and LeMaitre Vascular.
Diversification Opportunities for BioLife Sciences and LeMaitre Vascular
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BioLife and LeMaitre is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding BioLife Sciences and LeMaitre Vascular in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LeMaitre Vascular and BioLife Sciences 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 BioLife Sciences 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 BioLife Sciences i.e., BioLife Sciences and LeMaitre Vascular go up and down completely randomly.
Pair Corralation between BioLife Sciences and LeMaitre Vascular
Given the investment horizon of 90 days BioLife Sciences is expected to generate 33.08 times more return on investment than LeMaitre Vascular. However, BioLife Sciences is 33.08 times more volatile than LeMaitre Vascular. It trades about 0.11 of its potential returns per unit of risk. LeMaitre Vascular is currently generating about 0.15 per unit of risk. If you would invest 0.01 in BioLife Sciences on September 1, 2024 and sell it today you would earn a total of 0.00 from holding BioLife Sciences or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BioLife Sciences vs. LeMaitre Vascular
Performance |
| Timeline |
| BioLife Sciences |
| LeMaitre Vascular |
BioLife Sciences and LeMaitre Vascular Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BioLife Sciences and LeMaitre Vascular
The main advantage of trading using opposite BioLife Sciences and LeMaitre Vascular positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BioLife Sciences 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.| BioLife Sciences vs. Sysmex Corp | BioLife Sciences vs. Coloplast AS | BioLife Sciences vs. Essilor International SA | BioLife Sciences vs. Coloplast A |
| 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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