Correlation Between LeMaitre Vascular and Nexgel
Can any of the company-specific risk be diversified away by investing in both LeMaitre Vascular and Nexgel 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 Nexgel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LeMaitre Vascular and Nexgel Inc, you can compare the effects of market volatilities on LeMaitre Vascular and Nexgel 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 Nexgel. Check out your portfolio center. Please also check ongoing floating volatility patterns of LeMaitre Vascular and Nexgel.
Diversification Opportunities for LeMaitre Vascular and Nexgel
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between LeMaitre and Nexgel is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding LeMaitre Vascular and Nexgel Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nexgel Inc 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 Nexgel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nexgel Inc has no effect on the direction of LeMaitre Vascular i.e., LeMaitre Vascular and Nexgel go up and down completely randomly.
Pair Corralation between LeMaitre Vascular and Nexgel
Given the investment horizon of 90 days LeMaitre Vascular is expected to generate 0.28 times more return on investment than Nexgel. However, LeMaitre Vascular is 3.59 times less risky than Nexgel. It trades about 0.41 of its potential returns per unit of risk. Nexgel Inc is currently generating about -0.03 per unit of risk. If you would invest 9,147 in LeMaitre Vascular on November 2, 2024 and sell it today you would earn a total of 868.00 from holding LeMaitre Vascular or generate 9.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
LeMaitre Vascular vs. Nexgel Inc
Performance |
| Timeline |
| LeMaitre Vascular |
| Nexgel Inc |
LeMaitre Vascular and Nexgel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LeMaitre Vascular and Nexgel
The main advantage of trading using opposite LeMaitre Vascular and Nexgel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LeMaitre Vascular position performs unexpectedly, Nexgel 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 Nexgel will offset losses from the drop in Nexgel's long position.| LeMaitre Vascular vs. InfuSystems Holdings | LeMaitre Vascular vs. Pro Dex | LeMaitre Vascular vs. Utah Medical Products | LeMaitre Vascular vs. Milestone Scientific |
| Nexgel vs. GlucoTrack | Nexgel vs. Predictive Oncology | Nexgel vs. Pro Dex | Nexgel vs. JIN MEDICAL INTERNATIONAL |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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