Correlation Between LENSAR and Mobix Labs
Can any of the company-specific risk be diversified away by investing in both LENSAR and Mobix Labs 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 Mobix Labs into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LENSAR Inc and Mobix Labs, you can compare the effects of market volatilities on LENSAR and Mobix Labs 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 Mobix Labs. Check out your portfolio center. Please also check ongoing floating volatility patterns of LENSAR and Mobix Labs.
Diversification Opportunities for LENSAR and Mobix Labs
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between LENSAR and Mobix is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding LENSAR Inc and Mobix Labs in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mobix Labs 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 Mobix Labs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mobix Labs has no effect on the direction of LENSAR i.e., LENSAR and Mobix Labs go up and down completely randomly.
Pair Corralation between LENSAR and Mobix Labs
Given the investment horizon of 90 days LENSAR Inc is expected to generate 0.53 times more return on investment than Mobix Labs. However, LENSAR Inc is 1.87 times less risky than Mobix Labs. It trades about 0.19 of its potential returns per unit of risk. Mobix Labs is currently generating about 0.06 per unit of risk. If you would invest 443.00 in LENSAR Inc on September 4, 2024 and sell it today you would earn a total of 312.00 from holding LENSAR Inc or generate 70.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
LENSAR Inc vs. Mobix Labs
Performance |
| Timeline |
| LENSAR Inc |
| Mobix Labs |
LENSAR and Mobix Labs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LENSAR and Mobix Labs
The main advantage of trading using opposite LENSAR and Mobix Labs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LENSAR position performs unexpectedly, Mobix Labs 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 Mobix Labs will offset losses from the drop in Mobix Labs' long position.The idea behind LENSAR Inc and Mobix Labs 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.| Mobix Labs vs. LENSAR Inc | Mobix Labs vs. ASE Industrial Holding | Mobix Labs vs. Arm Holdings plc | Mobix Labs vs. The Joint Corp |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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