Correlation Between LENSAR and SIEMENS N

Can any of the company-specific risk be diversified away by investing in both LENSAR and SIEMENS N 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 LENSAR and SIEMENS N into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between LENSAR Inc and SIEMENS N, you can compare the effects of market volatilities on LENSAR and SIEMENS N 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 LENSAR with a short position of SIEMENS N. Check out your portfolio center. Please also check ongoing floating volatility patterns of LENSAR and SIEMENS N.

Diversification Opportunities for LENSAR and SIEMENS N

-0.15

Correlation Coefficient

LENSAR  SIEMENS N

Good diversification

The 3 months correlation between LENSAR and SIEMENS is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding LENSAR Inc and SIEMENS N in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SIEMENS N and LENSAR 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 LENSAR Inc are associated (or correlated) with SIEMENS N. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SIEMENS N has no effect on the direction of LENSAR i.e., LENSAR and SIEMENS N go up and down completely randomly.

Pair Corralation between LENSAR and SIEMENS N

If you would invest  434.00  in LENSAR Inc on March 7, 2024 and sell it today you would lose (4.00) from holding LENSAR Inc or give up 0.92% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

LENSAR Inc  vs.  SIEMENS N

LENSAR Inc

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in LENSAR Inc are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Even with relatively unfluctuating basic indicators, LENSAR may actually be approaching a critical reversion point that can send shares even higher in July 2024.

SIEMENS N

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days SIEMENS N has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy technical and fundamental indicators, SIEMENS N is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with LENSAR and SIEMENS N

The main advantage of trading using opposite LENSAR and SIEMENS N positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LENSAR position performs unexpectedly, SIEMENS N 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 SIEMENS N will offset losses from the drop in SIEMENS N's long position.

The idea behind LENSAR Inc and SIEMENS N pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.