Correlation Between LENSAR and VS Media
Can any of the company-specific risk be diversified away by investing in both LENSAR and VS Media 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 VS Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LENSAR Inc and VS Media Holdings, you can compare the effects of market volatilities on LENSAR and VS Media 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 VS Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of LENSAR and VS Media.
Diversification Opportunities for LENSAR and VS Media
Average diversification
The 3 months correlation between LENSAR and VSME is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding LENSAR Inc and VS Media Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VS Media Holdings 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 VS Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VS Media Holdings has no effect on the direction of LENSAR i.e., LENSAR and VS Media go up and down completely randomly.
Pair Corralation between LENSAR and VS Media
Given the investment horizon of 90 days LENSAR Inc is expected to generate 0.39 times more return on investment than VS Media. However, LENSAR Inc is 2.59 times less risky than VS Media. It trades about 0.12 of its potential returns per unit of risk. VS Media Holdings is currently generating about 0.01 per unit of risk. If you would invest 217.00 in LENSAR Inc on September 14, 2024 and sell it today you would earn a total of 538.00 from holding LENSAR Inc or generate 247.93% 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. VS Media Holdings
Performance |
| Timeline |
| LENSAR Inc |
| VS Media Holdings |
LENSAR and VS Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LENSAR and VS Media
The main advantage of trading using opposite LENSAR and VS Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LENSAR position performs unexpectedly, VS Media 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 VS Media will offset losses from the drop in VS Media's long position.| LENSAR vs. Avita Medical | LENSAR vs. Sight Sciences | LENSAR vs. Treace Medical Concepts | LENSAR vs. Neuropace |
| VS Media vs. Enel Chile SA | VS Media vs. LENSAR Inc | VS Media vs. Cardinal Health | VS Media vs. Atmos Energy |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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