Correlation Between Apyx Medical and Inspira Technologies
Can any of the company-specific risk be diversified away by investing in both Apyx Medical and Inspira Technologies 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 Apyx Medical and Inspira Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apyx Medical and Inspira Technologies Oxy, you can compare the effects of market volatilities on Apyx Medical and Inspira Technologies 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 Apyx Medical with a short position of Inspira Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apyx Medical and Inspira Technologies.
Diversification Opportunities for Apyx Medical and Inspira Technologies
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Apyx and Inspira is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Apyx Medical and Inspira Technologies Oxy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inspira Technologies Oxy and Apyx Medical 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 Apyx Medical are associated (or correlated) with Inspira Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inspira Technologies Oxy has no effect on the direction of Apyx Medical i.e., Apyx Medical and Inspira Technologies go up and down completely randomly.
Pair Corralation between Apyx Medical and Inspira Technologies
Given the investment horizon of 90 days Apyx Medical is expected to generate 0.44 times more return on investment than Inspira Technologies. However, Apyx Medical is 2.26 times less risky than Inspira Technologies. It trades about 0.1 of its potential returns per unit of risk. Inspira Technologies Oxy is currently generating about -0.15 per unit of risk. If you would invest 142.00 in Apyx Medical on September 22, 2024 and sell it today you would earn a total of 15.00 from holding Apyx Medical or generate 10.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Apyx Medical vs. Inspira Technologies Oxy
Performance |
| Timeline |
| Apyx Medical |
| Inspira Technologies Oxy |
Apyx Medical and Inspira Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apyx Medical and Inspira Technologies
The main advantage of trading using opposite Apyx Medical and Inspira Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apyx Medical position performs unexpectedly, Inspira Technologies 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 Inspira Technologies will offset losses from the drop in Inspira Technologies' long position.| Apyx Medical vs. Neuropace | Apyx Medical vs. Inogen Inc | Apyx Medical vs. SurModics | Apyx Medical vs. Pulmonx Corp |
| Inspira Technologies vs. Protagenic Therapeutics | Inspira Technologies vs. Guardforce AI Co | Inspira Technologies vs. TC BioPharm plc | Inspira Technologies vs. bioAffinity Technologies Warrant |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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