Correlation Between LENSAR and BingEx
Can any of the company-specific risk be diversified away by investing in both LENSAR and BingEx 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 BingEx into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LENSAR Inc and BingEx, you can compare the effects of market volatilities on LENSAR and BingEx 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 BingEx. Check out your portfolio center. Please also check ongoing floating volatility patterns of LENSAR and BingEx.
Diversification Opportunities for LENSAR and BingEx
Pay attention - limited upside
The 3 months correlation between LENSAR and BingEx is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding LENSAR Inc and BingEx in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BingEx 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 BingEx. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BingEx has no effect on the direction of LENSAR i.e., LENSAR and BingEx go up and down completely randomly.
Pair Corralation between LENSAR and BingEx
Given the investment horizon of 90 days LENSAR Inc is expected to generate 0.74 times more return on investment than BingEx. However, LENSAR Inc is 1.36 times less risky than BingEx. It trades about 0.29 of its potential returns per unit of risk. BingEx is currently generating about -0.4 per unit of risk. If you would invest 586.00 in LENSAR Inc on September 4, 2024 and sell it today you would earn a total of 169.00 from holding LENSAR Inc or generate 28.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
LENSAR Inc vs. BingEx
Performance |
| Timeline |
| LENSAR Inc |
| BingEx |
LENSAR and BingEx Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LENSAR and BingEx
The main advantage of trading using opposite LENSAR and BingEx positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LENSAR position performs unexpectedly, BingEx 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 BingEx will offset losses from the drop in BingEx's long position.The idea behind LENSAR Inc and BingEx 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.| BingEx vs. Grupo Simec SAB | BingEx vs. LENSAR Inc | BingEx vs. Cardinal Health | BingEx vs. Alaska Air Group |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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