Correlation Between Mobix Labs and LENSAR

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

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

Diversification Opportunities for Mobix Labs and LENSAR

-0.38

Correlation Coefficient

Mobix Labs  LENSAR

Very good diversification

The 3 months correlation between Mobix and LENSAR is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Mobix Labs and LENSAR Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LENSAR Inc and Mobix Labs 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 Mobix Labs 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 Mobix Labs i.e., Mobix Labs and LENSAR go up and down completely randomly.

Pair Corralation between Mobix Labs and LENSAR

Given the investment horizon of 90 days Mobix Labs is expected to generate 1.84 times less return on investment than LENSAR. In addition to that, Mobix Labs is 1.87 times more volatile than LENSAR Inc. It trades about 0.06 of its total potential returns per unit of risk. LENSAR Inc is currently generating about 0.19 per unit of volatility. If you would invest  443.00  in LENSAR Inc on September 4, 2024 and sell it today you would earn a total of  312.00  from holding LENSAR Inc or generate 70.43% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Mobix Labs  vs.  LENSAR Inc

Mobix Labs

Risk-Adjusted Performance

4 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Mobix Labs are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak fundamental drivers, Mobix Labs showed solid returns over the last few months and may actually be approaching a breakup point.

LENSAR Inc

Risk-Adjusted Performance

15 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in LENSAR Inc are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Even with relatively uncertain basic indicators, LENSAR reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Mobix Labs and LENSAR

The main advantage of trading using opposite Mobix Labs and LENSAR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mobix Labs 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.

The idea behind Mobix Labs and LENSAR Inc 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.