Correlation Between InMode and BioMark Diagnostics
Can any of the company-specific risk be diversified away by investing in both InMode and BioMark Diagnostics 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 InMode and BioMark Diagnostics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between InMode and BioMark Diagnostics, you can compare the effects of market volatilities on InMode and BioMark Diagnostics 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 InMode with a short position of BioMark Diagnostics. Check out your portfolio center. Please also check ongoing floating volatility patterns of InMode and BioMark Diagnostics.
Diversification Opportunities for InMode and BioMark Diagnostics
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between InMode and BioMark is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding InMode and BioMark Diagnostics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BioMark Diagnostics and InMode 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 InMode are associated (or correlated) with BioMark Diagnostics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BioMark Diagnostics has no effect on the direction of InMode i.e., InMode and BioMark Diagnostics go up and down completely randomly.
Pair Corralation between InMode and BioMark Diagnostics
Given the investment horizon of 90 days InMode is expected to under-perform the BioMark Diagnostics. In addition to that, InMode is 1.27 times more volatile than BioMark Diagnostics. It trades about -0.07 of its total potential returns per unit of risk. BioMark Diagnostics is currently generating about 0.01 per unit of volatility. If you would invest 15.00 in BioMark Diagnostics on September 12, 2024 and sell it today you would earn a total of 0.00 from holding BioMark Diagnostics or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
InMode vs. BioMark Diagnostics
Performance |
| Timeline |
| InMode |
| BioMark Diagnostics |
InMode and BioMark Diagnostics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with InMode and BioMark Diagnostics
The main advantage of trading using opposite InMode and BioMark Diagnostics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if InMode position performs unexpectedly, BioMark Diagnostics 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 BioMark Diagnostics will offset losses from the drop in BioMark Diagnostics' long position.| InMode vs. TransMedics Group | InMode vs. Inspire Medical Systems | InMode vs. Inari Medical | InMode vs. Insulet |
| BioMark Diagnostics vs. Neuronetics | BioMark Diagnostics vs. Intelligent Bio Solutions | BioMark Diagnostics vs. Biodesix | BioMark Diagnostics vs. Precipio |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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