Correlation Between Icecure Medical and Tandem Diabetes
Can any of the company-specific risk be diversified away by investing in both Icecure Medical and Tandem Diabetes 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 Tandem Diabetes into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Icecure Medical and Tandem Diabetes Care, you can compare the effects of market volatilities on Icecure Medical and Tandem Diabetes 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 Tandem Diabetes. Check out your portfolio center. Please also check ongoing floating volatility patterns of Icecure Medical and Tandem Diabetes.
Diversification Opportunities for Icecure Medical and Tandem Diabetes
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Icecure and Tandem is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Icecure Medical and Tandem Diabetes Care in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tandem Diabetes Care 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 Tandem Diabetes. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tandem Diabetes Care has no effect on the direction of Icecure Medical i.e., Icecure Medical and Tandem Diabetes go up and down completely randomly.
Pair Corralation between Icecure Medical and Tandem Diabetes
Given the investment horizon of 90 days Icecure Medical is expected to generate 2.55 times more return on investment than Tandem Diabetes. However, Icecure Medical is 2.55 times more volatile than Tandem Diabetes Care. It trades about 0.03 of its potential returns per unit of risk. Tandem Diabetes Care is currently generating about 0.01 per unit of risk. If you would invest 100.00 in Icecure Medical on September 4, 2024 and sell it today you would lose (19.00) from holding Icecure Medical or give up 19.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Icecure Medical vs. Tandem Diabetes Care
Performance |
| Timeline |
| Icecure Medical |
| Tandem Diabetes Care |
Icecure Medical and Tandem Diabetes Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Icecure Medical and Tandem Diabetes
The main advantage of trading using opposite Icecure Medical and Tandem Diabetes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Icecure Medical position performs unexpectedly, Tandem Diabetes 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 Tandem Diabetes will offset losses from the drop in Tandem Diabetes' long position.| Icecure Medical vs. BrainsWay | Icecure Medical vs. SurModics | Icecure Medical vs. STRATA Skin Sciences | Icecure Medical vs. Tenon Medical |
| Tandem Diabetes vs. DexCom Inc | Tandem Diabetes vs. Inspire Medical Systems | Tandem Diabetes vs. Penumbra | Tandem Diabetes vs. Insulet |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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