Correlation Between Shockwave Medical and LENSAR
Can any of the company-specific risk be diversified away by investing in both Shockwave 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 Shockwave Medical and LENSAR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shockwave Medical and LENSAR Inc, you can compare the effects of market volatilities on Shockwave 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 Shockwave Medical with a short position of LENSAR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shockwave Medical and LENSAR.
Diversification Opportunities for Shockwave Medical and LENSAR
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shockwave and LENSAR is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Shockwave Medical and LENSAR Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LENSAR Inc and Shockwave 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 Shockwave Medical 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 Shockwave Medical i.e., Shockwave Medical and LENSAR go up and down completely randomly.
Pair Corralation between Shockwave Medical and LENSAR
If you would invest 738.00 in LENSAR Inc on September 12, 2024 and sell it today you would earn a total of 19.00 from holding LENSAR Inc or generate 2.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Shockwave Medical vs. LENSAR Inc
Performance |
| Timeline |
| Shockwave Medical |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| LENSAR Inc |
Shockwave Medical and LENSAR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shockwave Medical and LENSAR
The main advantage of trading using opposite Shockwave Medical and LENSAR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shockwave 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.| Shockwave Medical vs. Inari Medical | Shockwave Medical vs. Outset Medical | Shockwave Medical vs. Clearpoint Neuro | Shockwave Medical vs. Inspire Medical Systems |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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