Correlation Between Heart Test and Icecure Medical
Can any of the company-specific risk be diversified away by investing in both Heart Test and Icecure 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 Heart Test and Icecure Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Heart Test Laboratories and Icecure Medical, you can compare the effects of market volatilities on Heart Test and Icecure 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 Heart Test with a short position of Icecure Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Heart Test and Icecure Medical.
Diversification Opportunities for Heart Test and Icecure Medical
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Heart and Icecure is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Heart Test Laboratories and Icecure Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Icecure Medical and Heart Test 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 Heart Test Laboratories are associated (or correlated) with Icecure Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Icecure Medical has no effect on the direction of Heart Test i.e., Heart Test and Icecure Medical go up and down completely randomly.
Pair Corralation between Heart Test and Icecure Medical
Given the investment horizon of 90 days Heart Test Laboratories is expected to under-perform the Icecure Medical. But the stock apears to be less risky and, when comparing its historical volatility, Heart Test Laboratories is 1.54 times less risky than Icecure Medical. The stock trades about -0.17 of its potential returns per unit of risk. The Icecure Medical is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 110.00 in Icecure Medical on October 29, 2024 and sell it today you would earn a total of 14.00 from holding Icecure Medical or generate 12.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 94.74% |
| Values | Daily Returns |
Heart Test Laboratories vs. Icecure Medical
Performance |
| Timeline |
| Heart Test Laboratories |
| Icecure Medical |
Heart Test and Icecure Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Heart Test and Icecure Medical
The main advantage of trading using opposite Heart Test and Icecure Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Heart Test position performs unexpectedly, Icecure 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 Icecure Medical will offset losses from the drop in Icecure Medical's long position.| Heart Test vs. Tivic Health Systems | Heart Test vs. Bluejay Diagnostics | Heart Test vs. Nuwellis | Heart Test vs. NeuroMetrix |
| Icecure Medical vs. BrainsWay | Icecure Medical vs. SurModics | Icecure Medical vs. STRATA Skin Sciences | Icecure Medical vs. Tenon Medical |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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