Correlation Between Inogen and Ekso Bionics
Can any of the company-specific risk be diversified away by investing in both Inogen and Ekso Bionics 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 Ekso Bionics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Inogen Inc and Ekso Bionics Holdings, you can compare the effects of market volatilities on Inogen and Ekso Bionics 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 Ekso Bionics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inogen and Ekso Bionics.
Diversification Opportunities for Inogen and Ekso Bionics
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Inogen and Ekso is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Inogen Inc and Ekso Bionics Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ekso Bionics Holdings 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 Ekso Bionics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ekso Bionics Holdings has no effect on the direction of Inogen i.e., Inogen and Ekso Bionics go up and down completely randomly.
Pair Corralation between Inogen and Ekso Bionics
Given the investment horizon of 90 days Inogen Inc is expected to under-perform the Ekso Bionics. But the stock apears to be less risky and, when comparing its historical volatility, Inogen Inc is 2.05 times less risky than Ekso Bionics. The stock trades about -0.07 of its potential returns per unit of risk. The Ekso Bionics Holdings is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 72.00 in Ekso Bionics Holdings on September 19, 2024 and sell it today you would earn a total of 0.00 from holding Ekso Bionics Holdings or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Inogen Inc vs. Ekso Bionics Holdings
Performance |
| Timeline |
| Inogen Inc |
| Ekso Bionics Holdings |
Inogen and Ekso Bionics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inogen and Ekso Bionics
The main advantage of trading using opposite Inogen and Ekso Bionics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inogen position performs unexpectedly, Ekso Bionics 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 Ekso Bionics will offset losses from the drop in Ekso Bionics' long position.The idea behind Inogen Inc and Ekso Bionics Holdings 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.| Ekso Bionics vs. Pro Dex | Ekso Bionics vs. Coloplast A | Ekso Bionics vs. Straumann Holding AG | Ekso Bionics vs. Nephros |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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