Correlation Between Pulmonx Corp and Lucid Diagnostics
Can any of the company-specific risk be diversified away by investing in both Pulmonx Corp and Lucid Diagnostics 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 Pulmonx Corp and Lucid Diagnostics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pulmonx Corp and Lucid Diagnostics, you can compare the effects of market volatilities on Pulmonx Corp and Lucid Diagnostics 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 Pulmonx Corp with a short position of Lucid Diagnostics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pulmonx Corp and Lucid Diagnostics.
Diversification Opportunities for Pulmonx Corp and Lucid Diagnostics
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Pulmonx and Lucid is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Pulmonx Corp and Lucid Diagnostics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lucid Diagnostics and Pulmonx Corp 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 Pulmonx Corp are associated (or correlated) with Lucid Diagnostics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lucid Diagnostics has no effect on the direction of Pulmonx Corp i.e., Pulmonx Corp and Lucid Diagnostics go up and down completely randomly.
Pair Corralation between Pulmonx Corp and Lucid Diagnostics
Given the investment horizon of 90 days Pulmonx Corp is expected to generate 4.24 times less return on investment than Lucid Diagnostics. In addition to that, Pulmonx Corp is 1.31 times more volatile than Lucid Diagnostics. It trades about 0.01 of its total potential returns per unit of risk. Lucid Diagnostics is currently generating about 0.05 per unit of volatility. If you would invest 88.00 in Lucid Diagnostics on September 1, 2024 and sell it today you would earn a total of 12.00 from holding Lucid Diagnostics or generate 13.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pulmonx Corp vs. Lucid Diagnostics
Performance |
| Timeline |
| Pulmonx Corp |
| Lucid Diagnostics |
Pulmonx Corp and Lucid Diagnostics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pulmonx Corp and Lucid Diagnostics
The main advantage of trading using opposite Pulmonx Corp and Lucid Diagnostics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pulmonx Corp position performs unexpectedly, Lucid Diagnostics 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 Lucid Diagnostics will offset losses from the drop in Lucid Diagnostics' long position.| Pulmonx Corp vs. Iradimed Co | Pulmonx Corp vs. Orthofix Medical | Pulmonx Corp vs. Neuropace | Pulmonx Corp vs. Integer Holdings Corp |
| Lucid Diagnostics vs. Inari Medical | Lucid Diagnostics vs. Beyond Air | Lucid Diagnostics vs. PAVmed Series Z | Lucid Diagnostics vs. Clearpoint Neuro |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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