Correlation Between LeMaitre Vascular and Haemonetics
Can any of the company-specific risk be diversified away by investing in both LeMaitre Vascular and Haemonetics 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 LeMaitre Vascular and Haemonetics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LeMaitre Vascular and Haemonetics, you can compare the effects of market volatilities on LeMaitre Vascular and Haemonetics 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 LeMaitre Vascular with a short position of Haemonetics. Check out your portfolio center. Please also check ongoing floating volatility patterns of LeMaitre Vascular and Haemonetics.
Diversification Opportunities for LeMaitre Vascular and Haemonetics
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between LeMaitre and Haemonetics is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding LeMaitre Vascular and Haemonetics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haemonetics and LeMaitre Vascular 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 LeMaitre Vascular are associated (or correlated) with Haemonetics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Haemonetics has no effect on the direction of LeMaitre Vascular i.e., LeMaitre Vascular and Haemonetics go up and down completely randomly.
Pair Corralation between LeMaitre Vascular and Haemonetics
Given the investment horizon of 90 days LeMaitre Vascular is expected to generate 1.18 times more return on investment than Haemonetics. However, LeMaitre Vascular is 1.18 times more volatile than Haemonetics. It trades about 0.08 of its potential returns per unit of risk. Haemonetics is currently generating about 0.02 per unit of risk. If you would invest 6,405 in LeMaitre Vascular on August 28, 2024 and sell it today you would earn a total of 4,304 from holding LeMaitre Vascular or generate 67.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
LeMaitre Vascular vs. Haemonetics
Performance |
| Timeline |
| LeMaitre Vascular |
| Haemonetics |
LeMaitre Vascular and Haemonetics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LeMaitre Vascular and Haemonetics
The main advantage of trading using opposite LeMaitre Vascular and Haemonetics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LeMaitre Vascular position performs unexpectedly, Haemonetics 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 Haemonetics will offset losses from the drop in Haemonetics' long position.| LeMaitre Vascular vs. InfuSystems Holdings | LeMaitre Vascular vs. Pro Dex | LeMaitre Vascular vs. Utah Medical Products | LeMaitre Vascular vs. Milestone Scientific |
| Haemonetics vs. Merit Medical Systems | Haemonetics vs. AngioDynamics | Haemonetics vs. AptarGroup | Haemonetics vs. Envista Holdings Corp |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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