Correlation Between Inspire Medical and Globus Medical
Can any of the company-specific risk be diversified away by investing in both Inspire Medical and Globus 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 Inspire Medical and Globus Medical 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 Globus Medical, you can compare the effects of market volatilities on Inspire Medical and Globus 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 Inspire Medical with a short position of Globus Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inspire Medical and Globus Medical.
Diversification Opportunities for Inspire Medical and Globus Medical
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Inspire and Globus is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Inspire Medical Systems and Globus Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Globus Medical 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 Globus Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Globus Medical has no effect on the direction of Inspire Medical i.e., Inspire Medical and Globus Medical go up and down completely randomly.
Pair Corralation between Inspire Medical and Globus Medical
Given the investment horizon of 90 days Inspire Medical Systems is expected to under-perform the Globus Medical. In addition to that, Inspire Medical is 2.09 times more volatile than Globus Medical. It trades about -0.01 of its total potential returns per unit of risk. Globus Medical is currently generating about 0.07 per unit of volatility. If you would invest 5,591 in Globus Medical on August 31, 2024 and sell it today you would earn a total of 2,970 from holding Globus Medical or generate 53.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Inspire Medical Systems vs. Globus Medical
Performance |
| Timeline |
| Inspire Medical Systems |
| Globus Medical |
Inspire Medical and Globus Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inspire Medical and Globus Medical
The main advantage of trading using opposite Inspire Medical and Globus Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inspire Medical position performs unexpectedly, Globus 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 Globus Medical will offset losses from the drop in Globus Medical's long position.| Inspire Medical vs. TransMedics Group | Inspire Medical vs. Inari Medical | Inspire Medical vs. InMode | Inspire Medical vs. Insulet |
| Globus Medical vs. Orthofix Medical | Globus Medical vs. CONMED | Globus Medical vs. Alphatec Holdings | Globus Medical vs. LivaNova PLC |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |