Correlation Between LENSAR and Integral
Can any of the company-specific risk be diversified away by investing in both LENSAR and Integral 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 Integral into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LENSAR Inc and Integral Ad Science, you can compare the effects of market volatilities on LENSAR and Integral 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 Integral. Check out your portfolio center. Please also check ongoing floating volatility patterns of LENSAR and Integral.
Diversification Opportunities for LENSAR and Integral
Modest diversification
The 3 months correlation between LENSAR and Integral is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding LENSAR Inc and Integral Ad Science in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Integral Ad Science 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 Integral. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Integral Ad Science has no effect on the direction of LENSAR i.e., LENSAR and Integral go up and down completely randomly.
Pair Corralation between LENSAR and Integral
Given the investment horizon of 90 days LENSAR Inc is expected to generate 1.21 times more return on investment than Integral. However, LENSAR is 1.21 times more volatile than Integral Ad Science. It trades about 0.31 of its potential returns per unit of risk. Integral Ad Science is currently generating about 0.08 per unit of risk. If you would invest 533.00 in LENSAR Inc on August 23, 2024 and sell it today you would earn a total of 212.00 from holding LENSAR Inc or generate 39.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
LENSAR Inc vs. Integral Ad Science
Performance |
| Timeline |
| LENSAR Inc |
| Integral Ad Science |
LENSAR and Integral Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LENSAR and Integral
The main advantage of trading using opposite LENSAR and Integral positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LENSAR position performs unexpectedly, Integral 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 Integral will offset losses from the drop in Integral's long position.The idea behind LENSAR Inc and Integral Ad Science 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.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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |