Correlation Between Inogen and Inspira Technologies
Can any of the company-specific risk be diversified away by investing in both Inogen and Inspira 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 Inogen and Inspira Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Inogen Inc and Inspira Technologies Oxy, you can compare the effects of market volatilities on Inogen and Inspira 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 Inogen with a short position of Inspira Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inogen and Inspira Technologies.
Diversification Opportunities for Inogen and Inspira Technologies
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Inogen and Inspira is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Inogen Inc and Inspira Technologies Oxy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inspira Technologies Oxy 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 Inspira Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inspira Technologies Oxy has no effect on the direction of Inogen i.e., Inogen and Inspira Technologies go up and down completely randomly.
Pair Corralation between Inogen and Inspira Technologies
Given the investment horizon of 90 days Inogen Inc is expected to generate 0.18 times more return on investment than Inspira Technologies. However, Inogen Inc is 5.56 times less risky than Inspira Technologies. It trades about -0.12 of its potential returns per unit of risk. Inspira Technologies Oxy is currently generating about -0.15 per unit of risk. If you would invest 921.00 in Inogen Inc on September 22, 2024 and sell it today you would lose (73.00) from holding Inogen Inc or give up 7.93% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Inogen Inc vs. Inspira Technologies Oxy
Performance |
| Timeline |
| Inogen Inc |
| Inspira Technologies Oxy |
Inogen and Inspira Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inogen and Inspira Technologies
The main advantage of trading using opposite Inogen and Inspira Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inogen position performs unexpectedly, Inspira 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 Inspira Technologies will offset losses from the drop in Inspira Technologies' long position.The idea behind Inogen Inc and Inspira Technologies Oxy 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.| Inspira Technologies vs. Protagenic Therapeutics | Inspira Technologies vs. Guardforce AI Co | Inspira Technologies vs. TC BioPharm plc | Inspira Technologies vs. bioAffinity Technologies Warrant |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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