Correlation Between Village Super and LENSAR
Can any of the company-specific risk be diversified away by investing in both Village Super 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 Village Super and LENSAR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Village Super Market and LENSAR Inc, you can compare the effects of market volatilities on Village Super 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 Village Super with a short position of LENSAR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Village Super and LENSAR.
Diversification Opportunities for Village Super and LENSAR
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Village and LENSAR is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Village Super Market and LENSAR Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LENSAR Inc and Village Super 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 Village Super Market 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 Village Super i.e., Village Super and LENSAR go up and down completely randomly.
Pair Corralation between Village Super and LENSAR
Assuming the 90 days horizon Village Super is expected to generate 3.34 times less return on investment than LENSAR. But when comparing it to its historical volatility, Village Super Market is 2.87 times less risky than LENSAR. It trades about 0.05 of its potential returns per unit of risk. LENSAR Inc is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 322.00 in LENSAR Inc on August 29, 2024 and sell it today you would earn a total of 447.00 from holding LENSAR Inc or generate 138.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Village Super Market vs. LENSAR Inc
Performance |
| Timeline |
| Village Super Market |
| LENSAR Inc |
Village Super and LENSAR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Village Super and LENSAR
The main advantage of trading using opposite Village Super and LENSAR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Village Super 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.| Village Super vs. Ingles Markets Incorporated | Village Super vs. Natural Grocers by | Village Super vs. Grocery Outlet Holding | Village Super vs. Weis Markets |
| LENSAR vs. Edwards Lifesciences Corp | LENSAR vs. Outset Medical | LENSAR vs. Venus Concept | LENSAR vs. DexCom Inc |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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