Correlation Between ICU Medical and NanoString Technologies
Can any of the company-specific risk be diversified away by investing in both ICU Medical and NanoString Technologies 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 ICU Medical and NanoString Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ICU Medical and NanoString Technologies, you can compare the effects of market volatilities on ICU Medical and NanoString Technologies 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 ICU Medical with a short position of NanoString Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of ICU Medical and NanoString Technologies.
Diversification Opportunities for ICU Medical and NanoString Technologies
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between ICU and NanoString is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding ICU Medical and NanoString Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NanoString Technologies and ICU 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 ICU Medical are associated (or correlated) with NanoString Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NanoString Technologies has no effect on the direction of ICU Medical i.e., ICU Medical and NanoString Technologies go up and down completely randomly.
Pair Corralation between ICU Medical and NanoString Technologies
If you would invest 411.00 in NanoString Technologies on August 28, 2024 and sell it today you would earn a total of 0.00 from holding NanoString Technologies or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
ICU Medical vs. NanoString Technologies
Performance |
| Timeline |
| ICU Medical |
| NanoString Technologies |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
ICU Medical and NanoString Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ICU Medical and NanoString Technologies
The main advantage of trading using opposite ICU Medical and NanoString Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ICU Medical position performs unexpectedly, NanoString Technologies 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 NanoString Technologies will offset losses from the drop in NanoString Technologies' long position.| ICU Medical vs. Merit Medical Systems | ICU Medical vs. The Cooper Companies, | ICU Medical vs. AngioDynamics | ICU Medical vs. AptarGroup |
| NanoString Technologies vs. Veracyte | NanoString Technologies vs. Syros Pharmaceuticals | NanoString Technologies vs. Seres Therapeutics | NanoString Technologies vs. Iovance Biotherapeutics |
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 CEOs Directory module to screen CEOs from public companies around the world.
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