Correlation Between Inogen and Catheter Precision
Can any of the company-specific risk be diversified away by investing in both Inogen and Catheter Precision 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 Catheter Precision into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Inogen Inc and Catheter Precision, you can compare the effects of market volatilities on Inogen and Catheter Precision 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 Catheter Precision. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inogen and Catheter Precision.
Diversification Opportunities for Inogen and Catheter Precision
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Inogen and Catheter is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Inogen Inc and Catheter Precision in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Catheter Precision 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 Catheter Precision. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Catheter Precision has no effect on the direction of Inogen i.e., Inogen and Catheter Precision go up and down completely randomly.
Pair Corralation between Inogen and Catheter Precision
Given the investment horizon of 90 days Inogen Inc is expected to generate 0.55 times more return on investment than Catheter Precision. However, Inogen Inc is 1.82 times less risky than Catheter Precision. It trades about 0.02 of its potential returns per unit of risk. Catheter Precision is currently generating about -0.27 per unit of risk. If you would invest 919.00 in Inogen Inc on August 24, 2024 and sell it today you would earn a total of 2.00 from holding Inogen Inc or generate 0.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Inogen Inc vs. Catheter Precision
Performance |
| Timeline |
| Inogen Inc |
| Catheter Precision |
Inogen and Catheter Precision Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inogen and Catheter Precision
The main advantage of trading using opposite Inogen and Catheter Precision positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inogen position performs unexpectedly, Catheter Precision 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 Catheter Precision will offset losses from the drop in Catheter Precision's long position.The idea behind Inogen Inc and Catheter Precision 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.| Catheter Precision vs. Neuropace | Catheter Precision vs. Inogen Inc | Catheter Precision vs. SurModics | Catheter Precision 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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