Correlation Between VERIZON and LENSAR
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By analyzing existing cross correlation between VERIZON MUNICATIONS INC and LENSAR Inc, you can compare the effects of market volatilities on VERIZON 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 VERIZON with a short position of LENSAR. Check out your portfolio center. Please also check ongoing floating volatility patterns of VERIZON and LENSAR.
Diversification Opportunities for VERIZON and LENSAR
Very good diversification
The 3 months correlation between VERIZON and LENSAR is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding VERIZON MUNICATIONS INC and LENSAR Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LENSAR Inc and VERIZON 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 VERIZON MUNICATIONS INC 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 VERIZON i.e., VERIZON and LENSAR go up and down completely randomly.
Pair Corralation between VERIZON and LENSAR
Assuming the 90 days trading horizon VERIZON MUNICATIONS INC is expected to under-perform the LENSAR. But the bond apears to be less risky and, when comparing its historical volatility, VERIZON MUNICATIONS INC is 2.46 times less risky than LENSAR. The bond trades about -0.08 of its potential returns per unit of risk. The LENSAR Inc is currently generating about 0.35 of returns per unit of risk over similar time horizon. If you would invest 538.00 in LENSAR Inc on September 2, 2024 and sell it today you would earn a total of 215.00 from holding LENSAR Inc or generate 39.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
VERIZON MUNICATIONS INC vs. LENSAR Inc
Performance |
| Timeline |
| VERIZON MUNICATIONS INC |
| LENSAR Inc |
VERIZON and LENSAR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VERIZON and LENSAR
The main advantage of trading using opposite VERIZON and LENSAR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VERIZON 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.| VERIZON vs. AEP TEX INC | VERIZON vs. US BANK NATIONAL | VERIZON vs. Bank of America | VERIZON vs. GE Aerospace |
| LENSAR vs. Profound Medical Corp | LENSAR vs. Si Bone | LENSAR vs. Nevro Corp | LENSAR vs. Orthopediatrics 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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