Correlation Between InMode and 29364WBH0

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Can any of the company-specific risk be diversified away by investing in both InMode and 29364WBH0 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 29364WBH0 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between InMode and ETR 235 15 JUN 32, you can compare the effects of market volatilities on InMode and 29364WBH0 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 29364WBH0. Check out your portfolio center. Please also check ongoing floating volatility patterns of InMode and 29364WBH0.

Diversification Opportunities for InMode and 29364WBH0

-0.53
  Correlation Coefficient

Excellent diversification

The 3 months correlation between InMode and 29364WBH0 is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding InMode and ETR 235 15 JUN 32 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ETR 235 15 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 29364WBH0. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ETR 235 15 has no effect on the direction of InMode i.e., InMode and 29364WBH0 go up and down completely randomly.

Pair Corralation between InMode and 29364WBH0

Given the investment horizon of 90 days InMode is expected to under-perform the 29364WBH0. In addition to that, InMode is 2.72 times more volatile than ETR 235 15 JUN 32. It trades about -0.03 of its total potential returns per unit of risk. ETR 235 15 JUN 32 is currently generating about 0.01 per unit of volatility. If you would invest  8,079  in ETR 235 15 JUN 32 on September 12, 2024 and sell it today you would earn a total of  29.00  from holding ETR 235 15 JUN 32 or generate 0.36% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy86.87%
ValuesDaily Returns

InMode  vs.  ETR 235 15 JUN 32

 Performance 
       Timeline  
InMode 

Risk-Adjusted Performance

5 of 100

 
Weak
 
Strong
Modest
Compared to the overall equity markets, risk-adjusted returns on investments in InMode are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak primary indicators, InMode exhibited solid returns over the last few months and may actually be approaching a breakup point.
ETR 235 15 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days ETR 235 15 JUN 32 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Bond's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for ETR 235 15 JUN 32 investors.

InMode and 29364WBH0 Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with InMode and 29364WBH0

The main advantage of trading using opposite InMode and 29364WBH0 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if InMode position performs unexpectedly, 29364WBH0 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 29364WBH0 will offset losses from the drop in 29364WBH0's long position.
The idea behind InMode and ETR 235 15 JUN 32 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.
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.

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