Correlation Between InMode and DANBNK
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By analyzing existing cross correlation between InMode and DANBNK 4375 12 JUN 28, you can compare the effects of market volatilities on InMode and DANBNK 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 DANBNK. Check out your portfolio center. Please also check ongoing floating volatility patterns of InMode and DANBNK.
Diversification Opportunities for InMode and DANBNK
Poor diversification
The 3 months correlation between InMode and DANBNK is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding InMode and DANBNK 4375 12 JUN 28 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DANBNK 4375 12 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 DANBNK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DANBNK 4375 12 has no effect on the direction of InMode i.e., InMode and DANBNK go up and down completely randomly.
Pair Corralation between InMode and DANBNK
Given the investment horizon of 90 days InMode is expected to under-perform the DANBNK. In addition to that, InMode is 3.38 times more volatile than DANBNK 4375 12 JUN 28. It trades about -0.03 of its total potential returns per unit of risk. DANBNK 4375 12 JUN 28 is currently generating about 0.02 per unit of volatility. If you would invest 9,286 in DANBNK 4375 12 JUN 28 on September 12, 2024 and sell it today you would earn a total of 202.00 from holding DANBNK 4375 12 JUN 28 or generate 2.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 29.9% |
| Values | Daily Returns |
InMode vs. DANBNK 4375 12 JUN 28
Performance |
| Timeline |
| InMode |
| DANBNK 4375 12 |
InMode and DANBNK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with InMode and DANBNK
The main advantage of trading using opposite InMode and DANBNK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if InMode position performs unexpectedly, DANBNK 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 DANBNK will offset losses from the drop in DANBNK'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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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