Correlation Between Joint Corp and LENSAR
Can any of the company-specific risk be diversified away by investing in both Joint Corp 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 Joint Corp and LENSAR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Joint Corp and LENSAR Inc, you can compare the effects of market volatilities on Joint Corp 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 Joint Corp with a short position of LENSAR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Joint Corp and LENSAR.
Diversification Opportunities for Joint Corp and LENSAR
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Joint and LENSAR is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding The Joint Corp and LENSAR Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LENSAR Inc and Joint Corp 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 The Joint Corp 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 Joint Corp i.e., Joint Corp and LENSAR go up and down completely randomly.
Pair Corralation between Joint Corp and LENSAR
Given the investment horizon of 90 days Joint Corp is expected to generate 2.96 times less return on investment than LENSAR. But when comparing it to its historical volatility, The Joint Corp is 2.15 times less risky than LENSAR. It trades about 0.23 of its potential returns per unit of risk. LENSAR Inc is currently generating about 0.32 of returns per unit of risk over similar time horizon. If you would invest 865.00 in LENSAR Inc on November 8, 2024 and sell it today you would earn a total of 294.00 from holding LENSAR Inc or generate 33.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Joint Corp vs. LENSAR Inc
Performance |
| Timeline |
| Joint Corp |
| LENSAR Inc |
Joint Corp and LENSAR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Joint Corp and LENSAR
The main advantage of trading using opposite Joint Corp and LENSAR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Joint Corp 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.| Joint Corp vs. Encompass Health Corp | Joint Corp vs. Pennant Group | Joint Corp vs. Enhabit | Joint Corp vs. ModivCare |
| LENSAR vs. Burning Rock Biotech | LENSAR vs. DarioHealth Corp | LENSAR vs. Sera Prognostics | LENSAR vs. Biodesix |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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