Correlation Between Rafina Innovations and LENSAR
Can any of the company-specific risk be diversified away by investing in both Rafina Innovations 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 Rafina Innovations and LENSAR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rafina Innovations and LENSAR Inc, you can compare the effects of market volatilities on Rafina Innovations 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 Rafina Innovations with a short position of LENSAR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rafina Innovations and LENSAR.
Diversification Opportunities for Rafina Innovations and LENSAR
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Rafina and LENSAR is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Rafina Innovations and LENSAR Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LENSAR Inc and Rafina Innovations 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 Rafina Innovations 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 Rafina Innovations i.e., Rafina Innovations and LENSAR go up and down completely randomly.
Pair Corralation between Rafina Innovations 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 | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Rafina Innovations vs. LENSAR Inc
Performance |
| Timeline |
| Rafina Innovations |
| LENSAR Inc |
Rafina Innovations and LENSAR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rafina Innovations and LENSAR
The main advantage of trading using opposite Rafina Innovations and LENSAR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rafina Innovations 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.| Rafina Innovations vs. LENSAR Inc | Rafina Innovations vs. Sight Sciences | Rafina Innovations vs. STRATA Skin Sciences | Rafina Innovations vs. enVVeno Medical 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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