Correlation Between LENSAR and Tyson Foods
Can any of the company-specific risk be diversified away by investing in both LENSAR and Tyson Foods 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 Tyson Foods into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LENSAR Inc and Tyson Foods, you can compare the effects of market volatilities on LENSAR and Tyson Foods 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 Tyson Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of LENSAR and Tyson Foods.
Diversification Opportunities for LENSAR and Tyson Foods
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between LENSAR and Tyson is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding LENSAR Inc and Tyson Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tyson Foods 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 Tyson Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tyson Foods has no effect on the direction of LENSAR i.e., LENSAR and Tyson Foods go up and down completely randomly.
Pair Corralation between LENSAR and Tyson Foods
Given the investment horizon of 90 days LENSAR Inc is expected to generate 2.98 times more return on investment than Tyson Foods. However, LENSAR is 2.98 times more volatile than Tyson Foods. It trades about 0.32 of its potential returns per unit of risk. Tyson Foods is currently generating about 0.23 per unit of risk. If you would invest 530.00 in LENSAR Inc on August 26, 2024 and sell it today you would earn a total of 208.00 from holding LENSAR Inc or generate 39.25% 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. Tyson Foods
Performance |
| Timeline |
| LENSAR Inc |
| Tyson Foods |
LENSAR and Tyson Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LENSAR and Tyson Foods
The main advantage of trading using opposite LENSAR and Tyson Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LENSAR position performs unexpectedly, Tyson Foods 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 Tyson Foods will offset losses from the drop in Tyson Foods' long position.| LENSAR vs. Heartbeam | LENSAR vs. EUDA Health Holdings | LENSAR vs. Nutex Health | LENSAR vs. Healthcare Triangle |
| Tyson Foods vs. Bellring Brands LLC | Tyson Foods vs. Ingredion Incorporated | Tyson Foods vs. Nomad Foods | Tyson Foods vs. Post Holdings |
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 Stocks Directory module to find actively traded stocks across global markets.
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