Correlation Between SenesTech and LENSAR

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

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

Diversification Opportunities for SenesTech and LENSAR

-0.57

Correlation Coefficient

SenesTech  LENSAR

Excellent diversification

The 3 months correlation between SenesTech and LENSAR is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding SenesTech and LENSAR Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LENSAR Inc and SenesTech 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 SenesTech 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 SenesTech i.e., SenesTech and LENSAR go up and down completely randomly.

Pair Corralation between SenesTech and LENSAR

Given the investment horizon of 90 days SenesTech is expected to generate 4.74 times more return on investment than LENSAR. However, SenesTech is 4.74 times more volatile than LENSAR Inc. It trades about 0.21 of its potential returns per unit of risk. LENSAR Inc is currently generating about -0.1 per unit of risk. If you would invest  245.00  in SenesTech on May 5, 2025 and sell it today you would earn a total of  280.00  from holding SenesTech or generate 114.29% return on investment over 90 days.

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

SenesTech  vs.  LENSAR Inc

SenesTech

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in SenesTech are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unfluctuating technical and fundamental indicators, SenesTech unveiled solid returns over the last few months and may actually be approaching a breakup point.

LENSAR Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days LENSAR Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest uncertain performance, the Stock's basic indicators remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the enterprise retail investors.

Pair Trading with SenesTech and LENSAR

The main advantage of trading using opposite SenesTech and LENSAR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SenesTech 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 SenesTech 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.