Correlation Between LENSAR and Ziff Davis
Can any of the company-specific risk be diversified away by investing in both LENSAR and Ziff Davis 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 Ziff Davis into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LENSAR Inc and Ziff Davis, you can compare the effects of market volatilities on LENSAR and Ziff Davis 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 Ziff Davis. Check out your portfolio center. Please also check ongoing floating volatility patterns of LENSAR and Ziff Davis.
Diversification Opportunities for LENSAR and Ziff Davis
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between LENSAR and Ziff is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding LENSAR Inc and Ziff Davis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ziff Davis 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 Ziff Davis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ziff Davis has no effect on the direction of LENSAR i.e., LENSAR and Ziff Davis go up and down completely randomly.
Pair Corralation between LENSAR and Ziff Davis
Given the investment horizon of 90 days LENSAR Inc is expected to generate 1.28 times more return on investment than Ziff Davis. However, LENSAR is 1.28 times more volatile than Ziff Davis. It trades about 0.28 of its potential returns per unit of risk. Ziff Davis is currently generating about 0.23 per unit of risk. If you would invest 560.00 in LENSAR Inc on August 29, 2024 and sell it today you would earn a total of 184.00 from holding LENSAR Inc or generate 32.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
LENSAR Inc vs. Ziff Davis
Performance |
| Timeline |
| LENSAR Inc |
| Ziff Davis |
LENSAR and Ziff Davis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LENSAR and Ziff Davis
The main advantage of trading using opposite LENSAR and Ziff Davis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LENSAR position performs unexpectedly, Ziff Davis 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 Ziff Davis will offset losses from the drop in Ziff Davis' long position.| LENSAR vs. Edwards Lifesciences Corp | LENSAR vs. Outset Medical | LENSAR vs. Venus Concept | LENSAR vs. DexCom Inc |
| Ziff Davis vs. Interpublic Group of | Ziff Davis vs. Criteo Sa | Ziff Davis vs. WPP PLC ADR | Ziff Davis vs. Integral Ad Science |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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