Correlation Between LENSAR and 01748TAB7
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By analyzing existing cross correlation between LENSAR Inc and Allegion 35 percent, you can compare the effects of market volatilities on LENSAR and 01748TAB7 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 01748TAB7. Check out your portfolio center. Please also check ongoing floating volatility patterns of LENSAR and 01748TAB7.
Diversification Opportunities for LENSAR and 01748TAB7
Excellent diversification
The 3 months correlation between LENSAR and 01748TAB7 is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding LENSAR Inc and Allegion 35 percent in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allegion 35 percent 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 01748TAB7. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allegion 35 percent has no effect on the direction of LENSAR i.e., LENSAR and 01748TAB7 go up and down completely randomly.
Pair Corralation between LENSAR and 01748TAB7
Given the investment horizon of 90 days LENSAR Inc is expected to generate 5.08 times more return on investment than 01748TAB7. However, LENSAR is 5.08 times more volatile than Allegion 35 percent. It trades about 0.06 of its potential returns per unit of risk. Allegion 35 percent is currently generating about 0.01 per unit of risk. If you would invest 295.00 in LENSAR Inc on September 5, 2024 and sell it today you would earn a total of 475.00 from holding LENSAR Inc or generate 161.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 81.01% |
| Values | Daily Returns |
LENSAR Inc vs. Allegion 35 percent
Performance |
| Timeline |
| LENSAR Inc |
| Allegion 35 percent |
LENSAR and 01748TAB7 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LENSAR and 01748TAB7
The main advantage of trading using opposite LENSAR and 01748TAB7 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LENSAR position performs unexpectedly, 01748TAB7 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 01748TAB7 will offset losses from the drop in 01748TAB7's long position.The idea behind LENSAR Inc and Allegion 35 percent 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.| 01748TAB7 vs. Nascent Wine | 01748TAB7 vs. Naked Wines plc | 01748TAB7 vs. LENSAR Inc | 01748TAB7 vs. Diageo PLC ADR |
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 Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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