Correlation Between Icecure Medical and Delcath Systems
Can any of the company-specific risk be diversified away by investing in both Icecure Medical and Delcath Systems 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 Delcath Systems into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Icecure Medical and Delcath Systems, you can compare the effects of market volatilities on Icecure Medical and Delcath Systems 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 Delcath Systems. Check out your portfolio center. Please also check ongoing floating volatility patterns of Icecure Medical and Delcath Systems.
Diversification Opportunities for Icecure Medical and Delcath Systems
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Icecure and Delcath is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Icecure Medical and Delcath Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Delcath Systems 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 Delcath Systems. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Delcath Systems has no effect on the direction of Icecure Medical i.e., Icecure Medical and Delcath Systems go up and down completely randomly.
Pair Corralation between Icecure Medical and Delcath Systems
Given the investment horizon of 90 days Icecure Medical is expected to generate 2.57 times more return on investment than Delcath Systems. However, Icecure Medical is 2.57 times more volatile than Delcath Systems. It trades about 0.12 of its potential returns per unit of risk. Delcath Systems is currently generating about -0.12 per unit of risk. If you would invest 62.00 in Icecure Medical on August 26, 2024 and sell it today you would earn a total of 9.00 from holding Icecure Medical or generate 14.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Icecure Medical vs. Delcath Systems
Performance |
| Timeline |
| Icecure Medical |
| Delcath Systems |
Icecure Medical and Delcath Systems Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Icecure Medical and Delcath Systems
The main advantage of trading using opposite Icecure Medical and Delcath Systems positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Icecure Medical position performs unexpectedly, Delcath Systems 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 Delcath Systems will offset losses from the drop in Delcath Systems' long position.| Icecure Medical vs. BrainsWay | Icecure Medical vs. SurModics | Icecure Medical vs. STRATA Skin Sciences | Icecure Medical vs. Tenon Medical |
| Delcath Systems vs. Neuropace | Delcath Systems vs. SurModics | Delcath Systems vs. CVRx Inc | Delcath Systems vs. LivaNova PLC |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |