Correlation Between Inogen and Akoya Biosciences
Can any of the company-specific risk be diversified away by investing in both Inogen and Akoya Biosciences 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 Inogen and Akoya Biosciences into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Inogen Inc and Akoya Biosciences, you can compare the effects of market volatilities on Inogen and Akoya Biosciences 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 Inogen with a short position of Akoya Biosciences. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inogen and Akoya Biosciences.
Diversification Opportunities for Inogen and Akoya Biosciences
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Inogen and Akoya is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Inogen Inc and Akoya Biosciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Akoya Biosciences and Inogen 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 Inogen Inc are associated (or correlated) with Akoya Biosciences. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Akoya Biosciences has no effect on the direction of Inogen i.e., Inogen and Akoya Biosciences go up and down completely randomly.
Pair Corralation between Inogen and Akoya Biosciences
Given the investment horizon of 90 days Inogen Inc is expected to generate 0.91 times more return on investment than Akoya Biosciences. However, Inogen Inc is 1.1 times less risky than Akoya Biosciences. It trades about 0.0 of its potential returns per unit of risk. Akoya Biosciences is currently generating about -0.04 per unit of risk. If you would invest 1,335 in Inogen Inc on December 10, 2024 and sell it today you would lose (559.00) from holding Inogen Inc or give up 41.87% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Inogen Inc vs. Akoya Biosciences
Performance |
| Timeline |
| Inogen Inc |
| Akoya Biosciences |
Inogen and Akoya Biosciences Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inogen and Akoya Biosciences
The main advantage of trading using opposite Inogen and Akoya Biosciences positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inogen position performs unexpectedly, Akoya Biosciences 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 Akoya Biosciences will offset losses from the drop in Akoya Biosciences' long position.The idea behind Inogen Inc and Akoya Biosciences pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Akoya Biosciences vs. AtriCure | Akoya Biosciences vs. ICU Medical | Akoya Biosciences vs. Haemonetics | Akoya Biosciences vs. AngioDynamics |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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