Correlation Between Asensus Surgical and Inspire Medical
Can any of the company-specific risk be diversified away by investing in both Asensus Surgical 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 Asensus Surgical and Inspire Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Asensus Surgical and Inspire Medical Systems, you can compare the effects of market volatilities on Asensus Surgical 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 Asensus Surgical with a short position of Inspire Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asensus Surgical and Inspire Medical.
Diversification Opportunities for Asensus Surgical and Inspire Medical
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Asensus and Inspire is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Asensus Surgical 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 Asensus Surgical 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 Asensus Surgical 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 Asensus Surgical i.e., Asensus Surgical and Inspire Medical go up and down completely randomly.
Pair Corralation between Asensus Surgical and Inspire Medical
Given the investment horizon of 90 days Asensus Surgical is expected to under-perform the Inspire Medical. In addition to that, Asensus Surgical is 1.98 times more volatile than Inspire Medical Systems. It trades about -0.03 of its total potential returns per unit of risk. Inspire Medical Systems is currently generating about 0.01 per unit of volatility. If you would invest 24,399 in Inspire Medical Systems on August 27, 2024 and sell it today you would lose (5,526) from holding Inspire Medical Systems or give up 22.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 85.93% |
| Values | Daily Returns |
Asensus Surgical vs. Inspire Medical Systems
Performance |
| Timeline |
| Asensus Surgical |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Inspire Medical Systems |
Asensus Surgical and Inspire Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asensus Surgical and Inspire Medical
The main advantage of trading using opposite Asensus Surgical and Inspire Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asensus Surgical 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.| Asensus Surgical vs. Senseonics Holdings | Asensus Surgical vs. Bionano Genomics | Asensus Surgical vs. Jaguar Animal Health | Asensus Surgical vs. Foresight Autonomous Holdings |
| Inspire Medical vs. TransMedics Group | Inspire Medical vs. Inari Medical | Inspire Medical vs. InMode | Inspire Medical vs. Insulet |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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