Correlation Between Inspira Technologies and Icecure Medical
Can any of the company-specific risk be diversified away by investing in both Inspira Technologies and Icecure Medical 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 Inspira Technologies and Icecure Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Inspira Technologies Oxy and Icecure Medical, you can compare the effects of market volatilities on Inspira Technologies and Icecure Medical 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 Inspira Technologies with a short position of Icecure Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inspira Technologies and Icecure Medical.
Diversification Opportunities for Inspira Technologies and Icecure Medical
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Inspira and Icecure is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Inspira Technologies Oxy and Icecure Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Icecure Medical and Inspira Technologies 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 Inspira Technologies Oxy are associated (or correlated) with Icecure Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Icecure Medical has no effect on the direction of Inspira Technologies i.e., Inspira Technologies and Icecure Medical go up and down completely randomly.
Pair Corralation between Inspira Technologies and Icecure Medical
Assuming the 90 days horizon Inspira Technologies Oxy is expected to generate 1.93 times more return on investment than Icecure Medical. However, Inspira Technologies is 1.93 times more volatile than Icecure Medical. It trades about 0.1 of its potential returns per unit of risk. Icecure Medical is currently generating about 0.16 per unit of risk. If you would invest 21.00 in Inspira Technologies Oxy on October 29, 2024 and sell it today you would earn a total of 2.00 from holding Inspira Technologies Oxy or generate 9.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 94.74% |
| Values | Daily Returns |
Inspira Technologies Oxy vs. Icecure Medical
Performance |
| Timeline |
| Inspira Technologies Oxy |
| Icecure Medical |
Inspira Technologies and Icecure Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inspira Technologies and Icecure Medical
The main advantage of trading using opposite Inspira Technologies and Icecure Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inspira Technologies position performs unexpectedly, Icecure Medical 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 Icecure Medical will offset losses from the drop in Icecure Medical's long position.| Inspira Technologies vs. Guardforce AI Co | Inspira Technologies vs. TC BioPharm plc | Inspira Technologies vs. bioAffinity Technologies Warrant |
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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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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