Correlation Between LeMaitre Vascular and Daxor

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

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

Diversification Opportunities for LeMaitre Vascular and Daxor

-0.4

Correlation Coefficient

LeMaitre Vascular  Daxor

Very good diversification

The 3 months correlation between LeMaitre and Daxor is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding LeMaitre Vascular and Daxor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Daxor and LeMaitre Vascular 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 LeMaitre Vascular are associated (or correlated) with Daxor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Daxor has no effect on the direction of LeMaitre Vascular i.e., LeMaitre Vascular and Daxor go up and down completely randomly.

Pair Corralation between LeMaitre Vascular and Daxor

Given the investment horizon of 90 days LeMaitre Vascular is expected to generate 0.95 times more return on investment than Daxor. However, LeMaitre Vascular is 1.05 times less risky than Daxor. It trades about 0.19 of its potential returns per unit of risk. Daxor is currently generating about -0.03 per unit of risk. If you would invest  8,305  in LeMaitre Vascular on January 27, 2025 and sell it today you would earn a total of  856.00  from holding LeMaitre Vascular or generate 10.31% return on investment over 90 days.

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

LeMaitre Vascular  vs.  Daxor

LeMaitre Vascular

Risk-Adjusted Performance

Very Weak

Over the last 90 days LeMaitre Vascular has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, LeMaitre Vascular is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Daxor

Risk-Adjusted Performance

Very Weak

Over the last 90 days Daxor has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Daxor is not utilizing all of its potentials. The newest stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with LeMaitre Vascular and Daxor

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

The idea behind LeMaitre Vascular and Daxor 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.