Correlation Between EnVVeno Medical and LENSAR
Can any of the company-specific risk be diversified away by investing in both EnVVeno Medical 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 EnVVeno Medical and LENSAR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between enVVeno Medical Corp and LENSAR Inc, you can compare the effects of market volatilities on EnVVeno Medical 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 EnVVeno Medical with a short position of LENSAR. Check out your portfolio center. Please also check ongoing floating volatility patterns of EnVVeno Medical and LENSAR.
Diversification Opportunities for EnVVeno Medical and LENSAR
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between EnVVeno and LENSAR is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding enVVeno Medical Corp and LENSAR Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LENSAR Inc and EnVVeno Medical 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 enVVeno Medical Corp 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 EnVVeno Medical i.e., EnVVeno Medical and LENSAR go up and down completely randomly.
Pair Corralation between EnVVeno Medical and LENSAR
Given the investment horizon of 90 days EnVVeno Medical is expected to generate 3.85 times less return on investment than LENSAR. But when comparing it to its historical volatility, enVVeno Medical Corp is 1.05 times less risky than LENSAR. It trades about 0.02 of its potential returns per unit of risk. LENSAR Inc is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 266.00 in LENSAR Inc on August 27, 2024 and sell it today you would earn a total of 472.00 from holding LENSAR Inc or generate 177.44% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
enVVeno Medical Corp vs. LENSAR Inc
Performance |
Timeline |
enVVeno Medical Corp |
LENSAR Inc |
EnVVeno Medical and LENSAR Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with EnVVeno Medical and LENSAR
The main advantage of trading using opposite EnVVeno Medical and LENSAR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EnVVeno Medical 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.EnVVeno Medical vs. Ainos Inc | EnVVeno Medical vs. SurModics | EnVVeno Medical vs. LENSAR Inc | EnVVeno Medical vs. IRIDEX |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
Performance Analysis Check effects of mean-variance optimization against your current asset allocation |