Correlation Between Icecure Medical and STRATA Skin
Can any of the company-specific risk be diversified away by investing in both Icecure Medical and STRATA Skin 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 STRATA Skin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Icecure Medical and STRATA Skin Sciences, you can compare the effects of market volatilities on Icecure Medical and STRATA Skin 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 STRATA Skin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Icecure Medical and STRATA Skin.
Diversification Opportunities for Icecure Medical and STRATA Skin
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Icecure and STRATA is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Icecure Medical and STRATA Skin Sciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STRATA Skin Sciences 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 STRATA Skin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STRATA Skin Sciences has no effect on the direction of Icecure Medical i.e., Icecure Medical and STRATA Skin go up and down completely randomly.
Pair Corralation between Icecure Medical and STRATA Skin
Given the investment horizon of 90 days Icecure Medical is expected to generate 2.6 times more return on investment than STRATA Skin. However, Icecure Medical is 2.6 times more volatile than STRATA Skin Sciences. It trades about 0.16 of its potential returns per unit of risk. STRATA Skin Sciences is currently generating about 0.04 per unit of risk. 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 Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Icecure Medical vs. STRATA Skin Sciences
Performance |
| Timeline |
| Icecure Medical |
| STRATA Skin Sciences |
Icecure Medical and STRATA Skin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Icecure Medical and STRATA Skin
The main advantage of trading using opposite Icecure Medical and STRATA Skin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Icecure Medical position performs unexpectedly, STRATA Skin 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 STRATA Skin will offset losses from the drop in STRATA Skin's long position.| Icecure Medical vs. BrainsWay | Icecure Medical vs. SurModics | Icecure Medical vs. STRATA Skin Sciences | Icecure Medical vs. Tenon Medical |
| STRATA Skin vs. Axogen Inc | STRATA Skin vs. Ainos Inc | STRATA Skin vs. LENSAR Inc | STRATA Skin vs. Nexalin Technology |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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