Correlation Between Inogen and Neogen
Can any of the company-specific risk be diversified away by investing in both Inogen and Neogen 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 Neogen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Inogen Inc and Neogen, you can compare the effects of market volatilities on Inogen and Neogen 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 Neogen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inogen and Neogen.
Diversification Opportunities for Inogen and Neogen
Very weak diversification
The 3 months correlation between Inogen and Neogen is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Inogen Inc and Neogen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Neogen 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 Neogen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Neogen has no effect on the direction of Inogen i.e., Inogen and Neogen go up and down completely randomly.
Pair Corralation between Inogen and Neogen
Given the investment horizon of 90 days Inogen Inc is expected to under-perform the Neogen. In addition to that, Inogen is 1.77 times more volatile than Neogen. It trades about -0.01 of its total potential returns per unit of risk. Neogen is currently generating about 0.0 per unit of volatility. If you would invest 1,523 in Neogen on September 20, 2024 and sell it today you would lose (310.00) from holding Neogen or give up 20.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Inogen Inc vs. Neogen
Performance |
| Timeline |
| Inogen Inc |
| Neogen |
Inogen and Neogen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inogen and Neogen
The main advantage of trading using opposite Inogen and Neogen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inogen position performs unexpectedly, Neogen 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 Neogen will offset losses from the drop in Neogen's long position.The idea behind Inogen Inc and Neogen 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.| Neogen vs. Qiagen NV | Neogen vs. Aclaris Therapeutics | Neogen vs. IQVIA Holdings | Neogen vs. Medpace Holdings |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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