Correlation Between NanoString Technologies and ICU Medical
Can any of the company-specific risk be diversified away by investing in both NanoString Technologies and ICU 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 NanoString Technologies and ICU Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NanoString Technologies and ICU Medical, you can compare the effects of market volatilities on NanoString Technologies and ICU 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 NanoString Technologies with a short position of ICU Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of NanoString Technologies and ICU Medical.
Diversification Opportunities for NanoString Technologies and ICU Medical
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between NanoString and ICU is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding NanoString Technologies and ICU Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ICU Medical and NanoString Technologies 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 NanoString Technologies are associated (or correlated) with ICU Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ICU Medical has no effect on the direction of NanoString Technologies i.e., NanoString Technologies and ICU Medical go up and down completely randomly.
Pair Corralation between NanoString Technologies and ICU Medical
If you would invest (100.00) in NanoString Technologies on November 18, 2024 and sell it today you would earn a total of 100.00 from holding NanoString Technologies or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
NanoString Technologies vs. ICU Medical
Performance |
| Timeline |
| NanoString Technologies |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| ICU Medical |
NanoString Technologies and ICU Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NanoString Technologies and ICU Medical
The main advantage of trading using opposite NanoString Technologies and ICU Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NanoString Technologies position performs unexpectedly, ICU 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 ICU Medical will offset losses from the drop in ICU Medical's long position.| NanoString Technologies vs. Veracyte | NanoString Technologies vs. Syros Pharmaceuticals | NanoString Technologies vs. Seres Therapeutics | NanoString Technologies vs. Iovance Biotherapeutics |
| ICU Medical vs. Merit Medical Systems | ICU Medical vs. The Cooper Companies, | ICU Medical vs. AngioDynamics | ICU Medical vs. AptarGroup |
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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