Correlation Between Icecure Medical and Heart Test
Can any of the company-specific risk be diversified away by investing in both Icecure Medical and Heart Test 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 Heart Test into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Icecure Medical and Heart Test Laboratories, you can compare the effects of market volatilities on Icecure Medical and Heart Test 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 Heart Test. Check out your portfolio center. Please also check ongoing floating volatility patterns of Icecure Medical and Heart Test.
Diversification Opportunities for Icecure Medical and Heart Test
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Icecure and Heart is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Icecure Medical and Heart Test Laboratories in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Heart Test Laboratories 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 Heart Test. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Heart Test Laboratories has no effect on the direction of Icecure Medical i.e., Icecure Medical and Heart Test go up and down completely randomly.
Pair Corralation between Icecure Medical and Heart Test
Given the investment horizon of 90 days Icecure Medical is expected to generate 0.97 times more return on investment than Heart Test. However, Icecure Medical is 1.03 times less risky than Heart Test. It trades about 0.16 of its potential returns per unit of risk. Heart Test Laboratories is currently generating about 0.05 per unit of risk. If you would invest 82.00 in Icecure Medical on November 6, 2024 and sell it today you would earn a total of 43.00 from holding Icecure Medical or generate 52.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Icecure Medical vs. Heart Test Laboratories
Performance |
| Timeline |
| Icecure Medical |
| Heart Test Laboratories |
Icecure Medical and Heart Test Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Icecure Medical and Heart Test
The main advantage of trading using opposite Icecure Medical and Heart Test positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Icecure Medical position performs unexpectedly, Heart Test 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 Heart Test will offset losses from the drop in Heart Test's long position.| Icecure Medical vs. BrainsWay | Icecure Medical vs. SurModics | Icecure Medical vs. STRATA Skin Sciences | Icecure Medical vs. Tenon Medical |
| Heart Test vs. Tivic Health Systems | Heart Test vs. Bluejay Diagnostics | Heart Test vs. Nuwellis | Heart Test vs. NeuroMetrix |
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 Stocks Directory module to find actively traded stocks across global markets.
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