Correlation Between Tivic Health and Inogen
Can any of the company-specific risk be diversified away by investing in both Tivic Health 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 Tivic Health and Inogen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tivic Health Systems and Inogen Inc, you can compare the effects of market volatilities on Tivic Health 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 Tivic Health with a short position of Inogen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tivic Health and Inogen.
Diversification Opportunities for Tivic Health and Inogen
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Tivic and Inogen is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Tivic Health Systems and Inogen Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inogen Inc and Tivic Health 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 Tivic Health Systems 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 Tivic Health i.e., Tivic Health and Inogen go up and down completely randomly.
Pair Corralation between Tivic Health and Inogen
Given the investment horizon of 90 days Tivic Health Systems is expected to generate 3.14 times more return on investment than Inogen. However, Tivic Health is 3.14 times more volatile than Inogen Inc. It trades about 0.01 of its potential returns per unit of risk. Inogen Inc is currently generating about 0.03 per unit of risk. If you would invest 30.00 in Tivic Health Systems on August 27, 2024 and sell it today you would lose (4.00) from holding Tivic Health Systems or give up 13.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tivic Health Systems vs. Inogen Inc
Performance |
| Timeline |
| Tivic Health Systems |
| Inogen Inc |
Tivic Health and Inogen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tivic Health and Inogen
The main advantage of trading using opposite Tivic Health and Inogen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tivic Health 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.| Tivic Health vs. Heartbeam | Tivic Health vs. EUDA Health Holdings | Tivic Health vs. Nutex Health | Tivic Health vs. Healthcare Triangle |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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