Correlation Between Axonics Modulation and Inari Medical
Can any of the company-specific risk be diversified away by investing in both Axonics Modulation and Inari 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 Axonics Modulation and Inari Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Axonics Modulation Technologies and Inari Medical, you can compare the effects of market volatilities on Axonics Modulation and Inari 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 Axonics Modulation with a short position of Inari Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Axonics Modulation and Inari Medical.
Diversification Opportunities for Axonics Modulation and Inari Medical
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Axonics and Inari is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Axonics Modulation Technologie and Inari Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inari Medical and Axonics Modulation 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 Axonics Modulation Technologies are associated (or correlated) with Inari Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inari Medical has no effect on the direction of Axonics Modulation i.e., Axonics Modulation and Inari Medical go up and down completely randomly.
Pair Corralation between Axonics Modulation and Inari Medical
Given the investment horizon of 90 days Axonics Modulation is expected to generate 11.48 times less return on investment than Inari Medical. But when comparing it to its historical volatility, Axonics Modulation Technologies is 21.12 times less risky than Inari Medical. It trades about 0.34 of its potential returns per unit of risk. Inari Medical is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 4,256 in Inari Medical on August 28, 2024 and sell it today you would earn a total of 692.00 from holding Inari Medical or generate 16.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 71.43% |
| Values | Daily Returns |
Axonics Modulation Technologie vs. Inari Medical
Performance |
| Timeline |
| Axonics Modulation |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
| Inari Medical |
Axonics Modulation and Inari Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Axonics Modulation and Inari Medical
The main advantage of trading using opposite Axonics Modulation and Inari Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Axonics Modulation position performs unexpectedly, Inari 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 Inari Medical will offset losses from the drop in Inari Medical's long position.| Axonics Modulation vs. Orthofix Medical | Axonics Modulation vs. Glaukos Corp | Axonics Modulation vs. Bruker | Axonics Modulation vs. Integer Holdings Corp |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |