Correlation Between LENSAR and ANZ Group
Can any of the company-specific risk be diversified away by investing in both LENSAR and ANZ Group 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 LENSAR and ANZ Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LENSAR Inc and ANZ Group Holdings, you can compare the effects of market volatilities on LENSAR and ANZ Group 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 LENSAR with a short position of ANZ Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of LENSAR and ANZ Group.
Diversification Opportunities for LENSAR and ANZ Group
Significant diversification
The 3 months correlation between LENSAR and ANZ is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding LENSAR Inc and ANZ Group Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ANZ Group Holdings and LENSAR 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 LENSAR Inc are associated (or correlated) with ANZ Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ANZ Group Holdings has no effect on the direction of LENSAR i.e., LENSAR and ANZ Group go up and down completely randomly.
Pair Corralation between LENSAR and ANZ Group
Given the investment horizon of 90 days LENSAR Inc is expected to generate 2.15 times more return on investment than ANZ Group. However, LENSAR is 2.15 times more volatile than ANZ Group Holdings. It trades about 0.08 of its potential returns per unit of risk. ANZ Group Holdings is currently generating about -0.35 per unit of risk. If you would invest 739.00 in LENSAR Inc on September 14, 2024 and sell it today you would earn a total of 25.00 from holding LENSAR Inc or generate 3.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
LENSAR Inc vs. ANZ Group Holdings
Performance |
| Timeline |
| LENSAR Inc |
| ANZ Group Holdings |
LENSAR and ANZ Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LENSAR and ANZ Group
The main advantage of trading using opposite LENSAR and ANZ Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LENSAR position performs unexpectedly, ANZ Group 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 ANZ Group will offset losses from the drop in ANZ Group's long position.| LENSAR vs. Avita Medical | LENSAR vs. Sight Sciences | LENSAR vs. Treace Medical Concepts | LENSAR vs. Neuropace |
| ANZ Group vs. Summit Environmental | ANZ Group vs. Viemed Healthcare | ANZ Group vs. LENSAR Inc | ANZ Group vs. Olympic Steel |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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