Correlation Between LeMaitre Vascular and TruBridge

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

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

Diversification Opportunities for LeMaitre Vascular and TruBridge

0.28

Correlation Coefficient

LeMaitre Vascular  TruBridge

Modest diversification

The 3 months correlation between LeMaitre and TruBridge is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding LeMaitre Vascular and TruBridge in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TruBridge 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 TruBridge. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TruBridge has no effect on the direction of LeMaitre Vascular i.e., LeMaitre Vascular and TruBridge go up and down completely randomly.

Pair Corralation between LeMaitre Vascular and TruBridge

Given the investment horizon of 90 days LeMaitre Vascular is expected to generate 0.73 times more return on investment than TruBridge. However, LeMaitre Vascular is 1.36 times less risky than TruBridge. It trades about 0.02 of its potential returns per unit of risk. TruBridge is currently generating about -0.18 per unit of risk. If you would invest  8,025  in LeMaitre Vascular on May 5, 2025 and sell it today you would earn a total of  79.00  from holding LeMaitre Vascular or generate 0.98% return on investment over 90 days.

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

LeMaitre Vascular  vs.  TruBridge

LeMaitre Vascular

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in LeMaitre Vascular are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, LeMaitre Vascular is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

TruBridge

Risk-Adjusted Performance

Very Weak

Over the last 90 days TruBridge has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in September 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with LeMaitre Vascular and TruBridge

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

The idea behind LeMaitre Vascular and TruBridge 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.