Correlation Between Icecure Medical and Aequus Pharmaceuticals
Can any of the company-specific risk be diversified away by investing in both Icecure Medical and Aequus Pharmaceuticals 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 Icecure Medical and Aequus Pharmaceuticals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Icecure Medical and Aequus Pharmaceuticals, you can compare the effects of market volatilities on Icecure Medical and Aequus Pharmaceuticals 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 Icecure Medical with a short position of Aequus Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Icecure Medical and Aequus Pharmaceuticals.
Diversification Opportunities for Icecure Medical and Aequus Pharmaceuticals
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Icecure and Aequus is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Icecure Medical and Aequus Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aequus Pharmaceuticals and Icecure Medical 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 Icecure Medical are associated (or correlated) with Aequus Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aequus Pharmaceuticals has no effect on the direction of Icecure Medical i.e., Icecure Medical and Aequus Pharmaceuticals go up and down completely randomly.
Pair Corralation between Icecure Medical and Aequus Pharmaceuticals
Given the investment horizon of 90 days Icecure Medical is expected to generate 1.0 times more return on investment than Aequus Pharmaceuticals. However, Icecure Medical is 1.0 times less risky than Aequus Pharmaceuticals. It trades about 0.02 of its potential returns per unit of risk. Aequus Pharmaceuticals is currently generating about -0.13 per unit of risk. If you would invest 85.00 in Icecure Medical on September 3, 2024 and sell it today you would lose (2.00) from holding Icecure Medical or give up 2.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Icecure Medical vs. Aequus Pharmaceuticals
Performance |
| Timeline |
| Icecure Medical |
| Aequus Pharmaceuticals |
Icecure Medical and Aequus Pharmaceuticals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Icecure Medical and Aequus Pharmaceuticals
The main advantage of trading using opposite Icecure Medical and Aequus Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Icecure Medical position performs unexpectedly, Aequus Pharmaceuticals 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 Aequus Pharmaceuticals will offset losses from the drop in Aequus Pharmaceuticals' long position.| Icecure Medical vs. Tandem Diabetes Care | Icecure Medical vs. Inspire Medical Systems | Icecure Medical vs. Penumbra | Icecure Medical vs. Insulet |
| Aequus Pharmaceuticals vs. Pmv Pharmaceuticals | Aequus Pharmaceuticals vs. MediciNova | Aequus Pharmaceuticals vs. Pharvaris BV | Aequus Pharmaceuticals vs. PepGen |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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