Correlation Between InMode and Escalon Medical
Can any of the company-specific risk be diversified away by investing in both InMode and Escalon Medical 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 Escalon Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between InMode and Escalon Medical Corp, you can compare the effects of market volatilities on InMode and Escalon Medical 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 Escalon Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of InMode and Escalon Medical.
Diversification Opportunities for InMode and Escalon Medical
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between InMode and Escalon is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding InMode and Escalon Medical Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Escalon Medical Corp 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 Escalon Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Escalon Medical Corp has no effect on the direction of InMode i.e., InMode and Escalon Medical go up and down completely randomly.
Pair Corralation between InMode and Escalon Medical
If you would invest 1,784 in InMode on August 24, 2024 and sell it today you would earn a total of 118.00 from holding InMode or generate 6.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.35% |
| Values | Daily Returns |
InMode vs. Escalon Medical Corp
Performance |
| Timeline |
| InMode |
| Escalon Medical Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
InMode and Escalon Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with InMode and Escalon Medical
The main advantage of trading using opposite InMode and Escalon Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if InMode position performs unexpectedly, Escalon Medical 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 Escalon Medical will offset losses from the drop in Escalon Medical's long position.| InMode vs. TransMedics Group | InMode vs. Inspire Medical Systems | InMode vs. Inari Medical | InMode vs. Insulet |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |