Correlation Between Pulmonx Corp and InMode
Can any of the company-specific risk be diversified away by investing in both Pulmonx Corp and InMode 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 Pulmonx Corp and InMode into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pulmonx Corp and InMode, you can compare the effects of market volatilities on Pulmonx Corp and InMode 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 Pulmonx Corp with a short position of InMode. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pulmonx Corp and InMode.
Diversification Opportunities for Pulmonx Corp and InMode
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Pulmonx and InMode is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Pulmonx Corp and InMode in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on InMode and Pulmonx Corp 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 Pulmonx Corp are associated (or correlated) with InMode. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of InMode has no effect on the direction of Pulmonx Corp i.e., Pulmonx Corp and InMode go up and down completely randomly.
Pair Corralation between Pulmonx Corp and InMode
Given the investment horizon of 90 days Pulmonx Corp is expected to under-perform the InMode. In addition to that, Pulmonx Corp is 1.87 times more volatile than InMode. It trades about -0.05 of its total potential returns per unit of risk. InMode is currently generating about 0.16 per unit of volatility. If you would invest 1,787 in InMode on August 31, 2024 and sell it today you would earn a total of 162.00 from holding InMode or generate 9.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pulmonx Corp vs. InMode
Performance |
| Timeline |
| Pulmonx Corp |
| InMode |
Pulmonx Corp and InMode Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pulmonx Corp and InMode
The main advantage of trading using opposite Pulmonx Corp and InMode positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pulmonx Corp position performs unexpectedly, InMode 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 InMode will offset losses from the drop in InMode's long position.| Pulmonx Corp vs. Iradimed Co | Pulmonx Corp vs. Orthofix Medical | Pulmonx Corp vs. Neuropace | Pulmonx Corp vs. Integer Holdings Corp |
| 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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