Correlation Between LENSAR and DIAGEO
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By analyzing existing cross correlation between LENSAR Inc and DIAGEO CAPITAL PLC, you can compare the effects of market volatilities on LENSAR and DIAGEO 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 DIAGEO. Check out your portfolio center. Please also check ongoing floating volatility patterns of LENSAR and DIAGEO.
Diversification Opportunities for LENSAR and DIAGEO
Pay attention - limited upside
The 3 months correlation between LENSAR and DIAGEO is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding LENSAR Inc and DIAGEO CAPITAL PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DIAGEO CAPITAL PLC 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 DIAGEO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DIAGEO CAPITAL PLC has no effect on the direction of LENSAR i.e., LENSAR and DIAGEO go up and down completely randomly.
Pair Corralation between LENSAR and DIAGEO
Given the investment horizon of 90 days LENSAR Inc is expected to generate 6.43 times more return on investment than DIAGEO. However, LENSAR is 6.43 times more volatile than DIAGEO CAPITAL PLC. It trades about 0.11 of its potential returns per unit of risk. DIAGEO CAPITAL PLC is currently generating about -0.03 per unit of risk. If you would invest 245.00 in LENSAR Inc on September 12, 2024 and sell it today you would earn a total of 519.00 from holding LENSAR Inc or generate 211.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 80.24% |
| Values | Daily Returns |
LENSAR Inc vs. DIAGEO CAPITAL PLC
Performance |
| Timeline |
| LENSAR Inc |
| DIAGEO CAPITAL PLC |
LENSAR and DIAGEO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LENSAR and DIAGEO
The main advantage of trading using opposite LENSAR and DIAGEO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LENSAR position performs unexpectedly, DIAGEO 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 DIAGEO will offset losses from the drop in DIAGEO's long position.The idea behind LENSAR Inc and DIAGEO CAPITAL PLC 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.| DIAGEO vs. Enersys | DIAGEO vs. Sabre Corpo | DIAGEO vs. Grocery Outlet Holding | DIAGEO vs. Cedar Realty Trust |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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