Correlation Between Electrocore LLC and InspireMD
Can any of the company-specific risk be diversified away by investing in both Electrocore LLC and InspireMD 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 Electrocore LLC and InspireMD into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Electrocore LLC and InspireMD, you can compare the effects of market volatilities on Electrocore LLC and InspireMD 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 Electrocore LLC with a short position of InspireMD. Check out your portfolio center. Please also check ongoing floating volatility patterns of Electrocore LLC and InspireMD.
Diversification Opportunities for Electrocore LLC and InspireMD
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Electrocore and InspireMD is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Electrocore LLC and InspireMD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on InspireMD and Electrocore LLC 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 Electrocore LLC are associated (or correlated) with InspireMD. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of InspireMD has no effect on the direction of Electrocore LLC i.e., Electrocore LLC and InspireMD go up and down completely randomly.
Pair Corralation between Electrocore LLC and InspireMD
Given the investment horizon of 90 days Electrocore LLC is expected to generate 1.02 times more return on investment than InspireMD. However, Electrocore LLC is 1.02 times more volatile than InspireMD. It trades about 0.09 of its potential returns per unit of risk. InspireMD is currently generating about 0.02 per unit of risk. If you would invest 465.00 in Electrocore LLC on September 12, 2024 and sell it today you would earn a total of 861.00 from holding Electrocore LLC or generate 185.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Electrocore LLC vs. InspireMD
Performance |
| Timeline |
| Electrocore LLC |
| InspireMD |
Electrocore LLC and InspireMD Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Electrocore LLC and InspireMD
The main advantage of trading using opposite Electrocore LLC and InspireMD positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Electrocore LLC position performs unexpectedly, InspireMD 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 InspireMD will offset losses from the drop in InspireMD's long position.| Electrocore LLC vs. STRATA Skin Sciences | Electrocore LLC vs. Sight Sciences | Electrocore LLC vs. Neuropace | Electrocore LLC vs. IRIDEX |
| InspireMD vs. Bone Biologics Corp | InspireMD vs. Tivic Health Systems | InspireMD vs. Bluejay Diagnostics | InspireMD vs. Vivos Therapeutics |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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