Correlation Between LENSAR and Cytosorbents Crp
Can any of the company-specific risk be diversified away by investing in both LENSAR and Cytosorbents Crp 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 Cytosorbents Crp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LENSAR Inc and Cytosorbents Crp, you can compare the effects of market volatilities on LENSAR and Cytosorbents Crp 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 Cytosorbents Crp. Check out your portfolio center. Please also check ongoing floating volatility patterns of LENSAR and Cytosorbents Crp.
Diversification Opportunities for LENSAR and Cytosorbents Crp
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between LENSAR and Cytosorbents is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding LENSAR Inc and Cytosorbents Crp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cytosorbents Crp 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 Cytosorbents Crp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cytosorbents Crp has no effect on the direction of LENSAR i.e., LENSAR and Cytosorbents Crp go up and down completely randomly.
Pair Corralation between LENSAR and Cytosorbents Crp
Given the investment horizon of 90 days LENSAR Inc is expected to generate 1.13 times more return on investment than Cytosorbents Crp. However, LENSAR is 1.13 times more volatile than Cytosorbents Crp. It trades about 0.29 of its potential returns per unit of risk. Cytosorbents Crp is currently generating about 0.09 per unit of risk. If you would invest 865.00 in LENSAR Inc on November 4, 2024 and sell it today you would earn a total of 245.00 from holding LENSAR Inc or generate 28.32% 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. Cytosorbents Crp
Performance |
| Timeline |
| LENSAR Inc |
| Cytosorbents Crp |
LENSAR and Cytosorbents Crp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LENSAR and Cytosorbents Crp
The main advantage of trading using opposite LENSAR and Cytosorbents Crp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LENSAR position performs unexpectedly, Cytosorbents Crp 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 Cytosorbents Crp will offset losses from the drop in Cytosorbents Crp's long position.The idea behind LENSAR Inc and Cytosorbents Crp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Cytosorbents Crp vs. LivaNova PLC | Cytosorbents Crp vs. Electromed | Cytosorbents Crp vs. Orthopediatrics Corp | Cytosorbents Crp vs. SurModics |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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