Correlation Between Nemaura Medical and Inogen
Can any of the company-specific risk be diversified away by investing in both Nemaura Medical and Inogen 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 Nemaura Medical and Inogen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nemaura Medical and Inogen Inc, you can compare the effects of market volatilities on Nemaura Medical and Inogen 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 Nemaura Medical with a short position of Inogen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nemaura Medical and Inogen.
Diversification Opportunities for Nemaura Medical and Inogen
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Nemaura and Inogen is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Nemaura Medical and Inogen Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inogen Inc and Nemaura 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 Nemaura Medical are associated (or correlated) with Inogen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inogen Inc has no effect on the direction of Nemaura Medical i.e., Nemaura Medical and Inogen go up and down completely randomly.
Pair Corralation between Nemaura Medical and Inogen
If you would invest 929.00 in Inogen Inc on August 29, 2024 and sell it today you would earn a total of 31.00 from holding Inogen Inc or generate 3.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Nemaura Medical vs. Inogen Inc
Performance |
| Timeline |
| Nemaura Medical |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Inogen Inc |
Nemaura Medical and Inogen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nemaura Medical and Inogen
The main advantage of trading using opposite Nemaura Medical and Inogen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nemaura Medical position performs unexpectedly, Inogen 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 Inogen will offset losses from the drop in Inogen's long position.| Nemaura Medical vs. Neuropace | Nemaura Medical vs. CVRx Inc | Nemaura Medical vs. Orthofix Medical | Nemaura Medical vs. Artivion |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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