Correlation Between LeMaitre Vascular and Harvard Bioscience
Can any of the company-specific risk be diversified away by investing in both LeMaitre Vascular and Harvard Bioscience 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 Harvard Bioscience into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LeMaitre Vascular and Harvard Bioscience, you can compare the effects of market volatilities on LeMaitre Vascular and Harvard Bioscience 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 Harvard Bioscience. Check out your portfolio center. Please also check ongoing floating volatility patterns of LeMaitre Vascular and Harvard Bioscience.
Diversification Opportunities for LeMaitre Vascular and Harvard Bioscience
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between LeMaitre and Harvard is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding LeMaitre Vascular and Harvard Bioscience in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harvard Bioscience 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 Harvard Bioscience. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Harvard Bioscience has no effect on the direction of LeMaitre Vascular i.e., LeMaitre Vascular and Harvard Bioscience go up and down completely randomly.
Pair Corralation between LeMaitre Vascular and Harvard Bioscience
Given the investment horizon of 90 days LeMaitre Vascular is expected to generate 0.23 times more return on investment than Harvard Bioscience. However, LeMaitre Vascular is 4.36 times less risky than Harvard Bioscience. It trades about 0.39 of its potential returns per unit of risk. Harvard Bioscience is currently generating about -0.03 per unit of risk. If you would invest 9,473 in LeMaitre Vascular on September 2, 2024 and sell it today you would earn a total of 1,226 from holding LeMaitre Vascular or generate 12.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
LeMaitre Vascular vs. Harvard Bioscience
Performance |
| Timeline |
| LeMaitre Vascular |
| Harvard Bioscience |
LeMaitre Vascular and Harvard Bioscience Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LeMaitre Vascular and Harvard Bioscience
The main advantage of trading using opposite LeMaitre Vascular and Harvard Bioscience positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LeMaitre Vascular position performs unexpectedly, Harvard Bioscience 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 Harvard Bioscience will offset losses from the drop in Harvard Bioscience's long position.| LeMaitre Vascular vs. InfuSystems Holdings | LeMaitre Vascular vs. Pro Dex | LeMaitre Vascular vs. Utah Medical Products | LeMaitre Vascular vs. Milestone Scientific |
| Harvard Bioscience vs. InfuSystems Holdings | Harvard Bioscience vs. Pro Dex | Harvard Bioscience vs. LeMaitre Vascular | Harvard Bioscience vs. Utah Medical Products |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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