Correlation Between Venus Concept and Icecure Medical
Can any of the company-specific risk be diversified away by investing in both Venus Concept 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 Venus Concept and Icecure Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Venus Concept and Icecure Medical, you can compare the effects of market volatilities on Venus Concept 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 Venus Concept with a short position of Icecure Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Venus Concept and Icecure Medical.
Diversification Opportunities for Venus Concept and Icecure Medical
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Venus and Icecure is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Venus Concept and Icecure Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Icecure Medical and Venus Concept 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 Venus Concept 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 Venus Concept i.e., Venus Concept and Icecure Medical go up and down completely randomly.
Pair Corralation between Venus Concept and Icecure Medical
Given the investment horizon of 90 days Venus Concept is expected to generate 2.27 times more return on investment than Icecure Medical. However, Venus Concept is 2.27 times more volatile than Icecure Medical. It trades about 0.01 of its potential returns per unit of risk. Icecure Medical is currently generating about -0.01 per unit of risk. If you would invest 57.00 in Venus Concept on September 1, 2024 and sell it today you would lose (25.00) from holding Venus Concept or give up 43.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Venus Concept vs. Icecure Medical
Performance |
| Timeline |
| Venus Concept |
| Icecure Medical |
Venus Concept and Icecure Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Venus Concept and Icecure Medical
The main advantage of trading using opposite Venus Concept and Icecure Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Venus Concept 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.| Venus Concept vs. Profound Medical Corp | Venus Concept vs. Si Bone | Venus Concept vs. Nevro Corp | Venus Concept vs. Paragon 28 |
| 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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |