Correlation Between LeMaitre Vascular and Nephros
Can any of the company-specific risk be diversified away by investing in both LeMaitre Vascular and Nephros 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 Nephros into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LeMaitre Vascular and Nephros, you can compare the effects of market volatilities on LeMaitre Vascular and Nephros 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 Nephros. Check out your portfolio center. Please also check ongoing floating volatility patterns of LeMaitre Vascular and Nephros.
Diversification Opportunities for LeMaitre Vascular and Nephros
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between LeMaitre and Nephros is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding LeMaitre Vascular and Nephros in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nephros 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 Nephros. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nephros has no effect on the direction of LeMaitre Vascular i.e., LeMaitre Vascular and Nephros go up and down completely randomly.
Pair Corralation between LeMaitre Vascular and Nephros
Given the investment horizon of 90 days LeMaitre Vascular is expected to generate 0.59 times more return on investment than Nephros. However, LeMaitre Vascular is 1.68 times less risky than Nephros. It trades about 0.08 of its potential returns per unit of risk. Nephros 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 Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
LeMaitre Vascular vs. Nephros
Performance |
| Timeline |
| LeMaitre Vascular |
| Nephros |
LeMaitre Vascular and Nephros Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LeMaitre Vascular and Nephros
The main advantage of trading using opposite LeMaitre Vascular and Nephros positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LeMaitre Vascular position performs unexpectedly, Nephros 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 Nephros will offset losses from the drop in Nephros' long position.| LeMaitre Vascular vs. InfuSystems Holdings | LeMaitre Vascular vs. Pro Dex | LeMaitre Vascular vs. Utah Medical Products | LeMaitre Vascular vs. Milestone Scientific |
| Nephros vs. Precision Optics, | Nephros vs. Repro Med Systems | Nephros vs. InfuSystems Holdings | Nephros 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |