Correlation Between Inogen and Heart Test
Can any of the company-specific risk be diversified away by investing in both Inogen and Heart Test 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 Heart Test into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Inogen Inc and Heart Test Laboratories, you can compare the effects of market volatilities on Inogen and Heart Test 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 Heart Test. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inogen and Heart Test.
Diversification Opportunities for Inogen and Heart Test
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Inogen and Heart is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Inogen Inc and Heart Test Laboratories in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Heart Test Laboratories 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 Heart Test. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Heart Test Laboratories has no effect on the direction of Inogen i.e., Inogen and Heart Test go up and down completely randomly.
Pair Corralation between Inogen and Heart Test
Given the investment horizon of 90 days Inogen Inc is expected to generate 0.37 times more return on investment than Heart Test. However, Inogen Inc is 2.74 times less risky than Heart Test. It trades about -0.01 of its potential returns per unit of risk. Heart Test Laboratories is currently generating about -0.02 per unit of risk. If you would invest 2,140 in Inogen Inc on August 24, 2024 and sell it today you would lose (1,202) from holding Inogen Inc or give up 56.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Inogen Inc vs. Heart Test Laboratories
Performance |
| Timeline |
| Inogen Inc |
| Heart Test Laboratories |
Inogen and Heart Test Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inogen and Heart Test
The main advantage of trading using opposite Inogen and Heart Test positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inogen position performs unexpectedly, Heart Test 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 Heart Test will offset losses from the drop in Heart Test's long position.The idea behind Inogen Inc and Heart Test Laboratories 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.| Heart Test vs. Neuropace | Heart Test vs. Inogen Inc | Heart Test vs. SurModics | Heart Test vs. Pulmonx Corp |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |