Correlation Between GlucoTrack and InspireMD
Can any of the company-specific risk be diversified away by investing in both GlucoTrack 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 GlucoTrack and InspireMD into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GlucoTrack and InspireMD, you can compare the effects of market volatilities on GlucoTrack 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 GlucoTrack with a short position of InspireMD. Check out your portfolio center. Please also check ongoing floating volatility patterns of GlucoTrack and InspireMD.
Diversification Opportunities for GlucoTrack and InspireMD
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GlucoTrack and InspireMD is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding GlucoTrack and InspireMD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on InspireMD and GlucoTrack 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 GlucoTrack 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 GlucoTrack i.e., GlucoTrack and InspireMD go up and down completely randomly.
Pair Corralation between GlucoTrack and InspireMD
Given the investment horizon of 90 days GlucoTrack is expected to under-perform the InspireMD. In addition to that, GlucoTrack is 4.38 times more volatile than InspireMD. It trades about -0.27 of its total potential returns per unit of risk. InspireMD is currently generating about -0.04 per unit of volatility. If you would invest 277.00 in InspireMD on November 9, 2024 and sell it today you would lose (15.00) from holding InspireMD or give up 5.42% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GlucoTrack vs. InspireMD
Performance |
| Timeline |
| GlucoTrack |
| InspireMD |
GlucoTrack and InspireMD Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GlucoTrack and InspireMD
The main advantage of trading using opposite GlucoTrack and InspireMD positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GlucoTrack 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.| GlucoTrack vs. Nexgel Inc | GlucoTrack vs. Avinger | GlucoTrack vs. Sharps Technology | GlucoTrack vs. Innovative Eyewear |
| 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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