Correlation Between Inspire Medical and Asensus Surgical
Can any of the company-specific risk be diversified away by investing in both Inspire Medical and Asensus Surgical 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 Inspire Medical and Asensus Surgical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Inspire Medical Systems and Asensus Surgical, you can compare the effects of market volatilities on Inspire Medical and Asensus Surgical 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 Inspire Medical with a short position of Asensus Surgical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inspire Medical and Asensus Surgical.
Diversification Opportunities for Inspire Medical and Asensus Surgical
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Inspire and Asensus is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Inspire Medical Systems and Asensus Surgical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asensus Surgical and Inspire Medical 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 Inspire Medical Systems are associated (or correlated) with Asensus Surgical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asensus Surgical has no effect on the direction of Inspire Medical i.e., Inspire Medical and Asensus Surgical go up and down completely randomly.
Pair Corralation between Inspire Medical and Asensus Surgical
Given the investment horizon of 90 days Inspire Medical Systems is expected to generate 0.19 times more return on investment than Asensus Surgical. However, Inspire Medical Systems is 5.4 times less risky than Asensus Surgical. It trades about 0.12 of its potential returns per unit of risk. Asensus Surgical is currently generating about -0.2 per unit of risk. If you would invest 13,361 in Inspire Medical Systems on August 27, 2024 and sell it today you would earn a total of 5,512 from holding Inspire Medical Systems or generate 41.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 24.71% |
| Values | Daily Returns |
Inspire Medical Systems vs. Asensus Surgical
Performance |
| Timeline |
| Inspire Medical Systems |
| Asensus Surgical |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Inspire Medical and Asensus Surgical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inspire Medical and Asensus Surgical
The main advantage of trading using opposite Inspire Medical and Asensus Surgical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inspire Medical position performs unexpectedly, Asensus Surgical 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 Asensus Surgical will offset losses from the drop in Asensus Surgical's long position.| Inspire Medical vs. TransMedics Group | Inspire Medical vs. Inari Medical | Inspire Medical vs. InMode | Inspire Medical vs. Insulet |
| Asensus Surgical vs. Senseonics Holdings | Asensus Surgical vs. Bionano Genomics | Asensus Surgical vs. Jaguar Animal Health | Asensus Surgical vs. Foresight Autonomous Holdings |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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