Correlation Between LENSAR and Xtant Medical
Can any of the company-specific risk be diversified away by investing in both LENSAR and Xtant Medical 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 Xtant Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LENSAR Inc and Xtant Medical Holdings, you can compare the effects of market volatilities on LENSAR and Xtant Medical 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 Xtant Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of LENSAR and Xtant Medical.
Diversification Opportunities for LENSAR and Xtant Medical
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between LENSAR and Xtant is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding LENSAR Inc and Xtant Medical Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xtant Medical 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 Xtant Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xtant Medical Holdings has no effect on the direction of LENSAR i.e., LENSAR and Xtant Medical go up and down completely randomly.
Pair Corralation between LENSAR and Xtant Medical
Given the investment horizon of 90 days LENSAR Inc is expected to generate 1.01 times more return on investment than Xtant Medical. However, LENSAR is 1.01 times more volatile than Xtant Medical Holdings. It trades about 0.06 of its potential returns per unit of risk. Xtant Medical Holdings is currently generating about 0.01 per unit of risk. If you would invest 315.00 in LENSAR Inc on August 30, 2024 and sell it today you would earn a total of 454.00 from holding LENSAR Inc or generate 144.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
LENSAR Inc vs. Xtant Medical Holdings
Performance |
| Timeline |
| LENSAR Inc |
| Xtant Medical Holdings |
LENSAR and Xtant Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LENSAR and Xtant Medical
The main advantage of trading using opposite LENSAR and Xtant Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LENSAR position performs unexpectedly, Xtant Medical 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 Xtant Medical will offset losses from the drop in Xtant Medical's long position.| LENSAR vs. Edwards Lifesciences Corp | LENSAR vs. Outset Medical | LENSAR vs. Venus Concept | LENSAR vs. DexCom Inc |
| Xtant Medical vs. Neuropace | Xtant Medical vs. Electromed | Xtant Medical vs. Orthopediatrics Corp | Xtant Medical vs. SurModics |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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