Correlation Between LeMaitre Vascular and Haemonetics

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

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

Diversification Opportunities for LeMaitre Vascular and Haemonetics

0.16

Correlation Coefficient

LeMaitre Vascular  Haemonetics

Average diversification

The 3 months correlation between LeMaitre and Haemonetics is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding LeMaitre Vascular and Haemonetics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haemonetics 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 Haemonetics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Haemonetics has no effect on the direction of LeMaitre Vascular i.e., LeMaitre Vascular and Haemonetics go up and down completely randomly.

Pair Corralation between LeMaitre Vascular and Haemonetics

Given the investment horizon of 90 days LeMaitre Vascular is expected to under-perform the Haemonetics. In addition to that, LeMaitre Vascular is 1.08 times more volatile than Haemonetics. It trades about -0.09 of its total potential returns per unit of risk. Haemonetics is currently generating about -0.01 per unit of volatility. If you would invest  6,615  in Haemonetics on February 3, 2025 and sell it today you would lose (230.00) from holding Haemonetics or give up 3.48% of portfolio value over 90 days.

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

LeMaitre Vascular  vs.  Haemonetics

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 uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in June 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Haemonetics

Risk-Adjusted Performance

Very Weak

Over the last 90 days Haemonetics has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Haemonetics is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with LeMaitre Vascular and Haemonetics

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

The idea behind LeMaitre Vascular and Haemonetics 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.