Correlation Between LENSAR and Weibo Corp
Can any of the company-specific risk be diversified away by investing in both LENSAR and Weibo Corp 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 Weibo Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LENSAR Inc and Weibo Corp, you can compare the effects of market volatilities on LENSAR and Weibo Corp 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 Weibo Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of LENSAR and Weibo Corp.
Diversification Opportunities for LENSAR and Weibo Corp
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between LENSAR and Weibo is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding LENSAR Inc and Weibo Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Weibo Corp 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 Weibo Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Weibo Corp has no effect on the direction of LENSAR i.e., LENSAR and Weibo Corp go up and down completely randomly.
Pair Corralation between LENSAR and Weibo Corp
Given the investment horizon of 90 days LENSAR Inc is expected to generate 1.65 times more return on investment than Weibo Corp. However, LENSAR is 1.65 times more volatile than Weibo Corp. It trades about 0.09 of its potential returns per unit of risk. Weibo Corp is currently generating about 0.0 per unit of risk. If you would invest 351.00 in LENSAR Inc on August 25, 2024 and sell it today you would earn a total of 387.00 from holding LENSAR Inc or generate 110.26% 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. Weibo Corp
Performance |
| Timeline |
| LENSAR Inc |
| Weibo Corp |
LENSAR and Weibo Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LENSAR and Weibo Corp
The main advantage of trading using opposite LENSAR and Weibo Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LENSAR position performs unexpectedly, Weibo Corp 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 Weibo Corp will offset losses from the drop in Weibo Corp's long position.| LENSAR vs. Heartbeam | LENSAR vs. EUDA Health Holdings | LENSAR vs. Nutex Health | LENSAR vs. Healthcare Triangle |
| Weibo Corp vs. Alphabet Inc Class C | Weibo Corp vs. Twilio Inc | Weibo Corp vs. Snap Inc | Weibo Corp vs. Baidu Inc |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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