Correlation Between Vapotherm and Icecure Medical
Can any of the company-specific risk be diversified away by investing in both Vapotherm and Icecure 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 Vapotherm and Icecure Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vapotherm and Icecure Medical, you can compare the effects of market volatilities on Vapotherm and Icecure 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 Vapotherm with a short position of Icecure Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vapotherm and Icecure Medical.
Diversification Opportunities for Vapotherm and Icecure Medical
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Vapotherm and Icecure is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Vapotherm and Icecure Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Icecure Medical and Vapotherm 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 Vapotherm are associated (or correlated) with Icecure Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Icecure Medical has no effect on the direction of Vapotherm i.e., Vapotherm and Icecure Medical go up and down completely randomly.
Pair Corralation between Vapotherm and Icecure Medical
If you would invest 40.00 in Vapotherm on September 1, 2024 and sell it today you would earn a total of 0.00 from holding Vapotherm or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 0.79% |
| Values | Daily Returns |
Vapotherm vs. Icecure Medical
Performance |
| Timeline |
| Vapotherm |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Icecure Medical |
Vapotherm and Icecure Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vapotherm and Icecure Medical
The main advantage of trading using opposite Vapotherm and Icecure Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vapotherm position performs unexpectedly, Icecure 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 Icecure Medical will offset losses from the drop in Icecure Medical's long position.| Vapotherm vs. Sight Sciences | Vapotherm vs. STRATA Skin Sciences | Vapotherm vs. Neuropace | Vapotherm vs. Nexalin Technology |
| Icecure Medical vs. BrainsWay | Icecure Medical vs. SurModics | Icecure Medical vs. STRATA Skin Sciences | Icecure Medical vs. Tenon Medical |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Transaction History View history of all your transactions and understand their impact on performance |