Correlation Between Mobix Labs and LENSAR
Can any of the company-specific risk be diversified away by investing in both Mobix Labs and LENSAR 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 Mobix Labs and LENSAR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mobix Labs and LENSAR Inc, you can compare the effects of market volatilities on Mobix Labs and LENSAR 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 Mobix Labs with a short position of LENSAR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mobix Labs and LENSAR.
Diversification Opportunities for Mobix Labs and LENSAR
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Mobix and LENSAR is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Mobix Labs and LENSAR Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LENSAR Inc and Mobix Labs 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 Mobix Labs are associated (or correlated) with LENSAR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LENSAR Inc has no effect on the direction of Mobix Labs i.e., Mobix Labs and LENSAR go up and down completely randomly.
Pair Corralation between Mobix Labs and LENSAR
Given the investment horizon of 90 days Mobix Labs is expected to generate 3.06 times more return on investment than LENSAR. However, Mobix Labs is 3.06 times more volatile than LENSAR Inc. It trades about 0.23 of its potential returns per unit of risk. LENSAR Inc is currently generating about 0.29 per unit of risk. If you would invest 70.00 in Mobix Labs on September 4, 2024 and sell it today you would earn a total of 44.00 from holding Mobix Labs or generate 62.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mobix Labs vs. LENSAR Inc
Performance |
| Timeline |
| Mobix Labs |
| LENSAR Inc |
Mobix Labs and LENSAR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mobix Labs and LENSAR
The main advantage of trading using opposite Mobix Labs and LENSAR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mobix Labs position performs unexpectedly, LENSAR 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 LENSAR will offset losses from the drop in LENSAR's long position.| Mobix Labs vs. LENSAR Inc | Mobix Labs vs. ASE Industrial Holding | Mobix Labs vs. Arm Holdings plc | Mobix Labs vs. The Joint Corp |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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