Correlation Between Glaukos Corp and InMode
Can any of the company-specific risk be diversified away by investing in both Glaukos Corp and InMode 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 Glaukos Corp and InMode into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Glaukos Corp and InMode, you can compare the effects of market volatilities on Glaukos Corp and InMode 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 Glaukos Corp with a short position of InMode. Check out your portfolio center. Please also check ongoing floating volatility patterns of Glaukos Corp and InMode.
Diversification Opportunities for Glaukos Corp and InMode
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Glaukos and InMode is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Glaukos Corp and InMode in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on InMode and Glaukos Corp 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 Glaukos Corp are associated (or correlated) with InMode. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of InMode has no effect on the direction of Glaukos Corp i.e., Glaukos Corp and InMode go up and down completely randomly.
Pair Corralation between Glaukos Corp and InMode
Given the investment horizon of 90 days Glaukos Corp is expected to generate 1.22 times less return on investment than InMode. In addition to that, Glaukos Corp is 1.14 times more volatile than InMode. It trades about 0.11 of its total potential returns per unit of risk. InMode is currently generating about 0.16 per unit of volatility. If you would invest 1,798 in InMode on August 28, 2024 and sell it today you would earn a total of 154.00 from holding InMode or generate 8.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Glaukos Corp vs. InMode
Performance |
| Timeline |
| Glaukos Corp |
| InMode |
Glaukos Corp and InMode Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Glaukos Corp and InMode
The main advantage of trading using opposite Glaukos Corp and InMode positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Glaukos Corp position performs unexpectedly, InMode 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 InMode will offset losses from the drop in InMode's long position.| Glaukos Corp vs. Orthopediatrics Corp | Glaukos Corp vs. CONMED | Glaukos Corp vs. LivaNova PLC | Glaukos Corp vs. Paragon 28 |
| InMode vs. TransMedics Group | InMode vs. Inspire Medical Systems | InMode vs. Inari Medical | InMode 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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