Correlation Between Aya Gold and Inspire Medical
Can any of the company-specific risk be diversified away by investing in both Aya Gold and Inspire Medical 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 Aya Gold and Inspire Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aya Gold Silver and Inspire Medical Systems, you can compare the effects of market volatilities on Aya Gold and Inspire Medical 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 Aya Gold with a short position of Inspire Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aya Gold and Inspire Medical.
Diversification Opportunities for Aya Gold and Inspire Medical
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Aya and Inspire is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Aya Gold Silver and Inspire Medical Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inspire Medical Systems and Aya Gold 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 Aya Gold Silver are associated (or correlated) with Inspire Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inspire Medical Systems has no effect on the direction of Aya Gold i.e., Aya Gold and Inspire Medical go up and down completely randomly.
Pair Corralation between Aya Gold and Inspire Medical
Assuming the 90 days trading horizon Aya Gold Silver is expected to generate 1.05 times more return on investment than Inspire Medical. However, Aya Gold is 1.05 times more volatile than Inspire Medical Systems. It trades about 0.09 of its potential returns per unit of risk. Inspire Medical Systems is currently generating about -0.05 per unit of risk. If you would invest 728.00 in Aya Gold Silver on October 28, 2024 and sell it today you would earn a total of 40.00 from holding Aya Gold Silver or generate 5.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aya Gold Silver vs. Inspire Medical Systems
Performance |
| Timeline |
| Aya Gold Silver |
| Inspire Medical Systems |
Aya Gold and Inspire Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aya Gold and Inspire Medical
The main advantage of trading using opposite Aya Gold and Inspire Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aya Gold position performs unexpectedly, Inspire Medical 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 Inspire Medical will offset losses from the drop in Inspire Medical's long position.The idea behind Aya Gold Silver and Inspire Medical Systems 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.| Inspire Medical vs. Abbott Laboratories | Inspire Medical vs. Abbott Laboratories | Inspire Medical vs. Medtronic PLC | Inspire Medical vs. Stryker |
Check out your portfolio center.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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |