Correlation Between Catheter Precision and InspireMD
Can any of the company-specific risk be diversified away by investing in both Catheter Precision and InspireMD 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 Catheter Precision and InspireMD into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Catheter Precision and InspireMD, you can compare the effects of market volatilities on Catheter Precision and InspireMD 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 Catheter Precision with a short position of InspireMD. Check out your portfolio center. Please also check ongoing floating volatility patterns of Catheter Precision and InspireMD.
Diversification Opportunities for Catheter Precision and InspireMD
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Catheter and InspireMD is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Catheter Precision and InspireMD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on InspireMD and Catheter Precision 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 Catheter Precision are associated (or correlated) with InspireMD. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of InspireMD has no effect on the direction of Catheter Precision i.e., Catheter Precision and InspireMD go up and down completely randomly.
Pair Corralation between Catheter Precision and InspireMD
Given the investment horizon of 90 days Catheter Precision is expected to under-perform the InspireMD. In addition to that, Catheter Precision is 1.39 times more volatile than InspireMD. It trades about -0.1 of its total potential returns per unit of risk. InspireMD is currently generating about 0.33 per unit of volatility. If you would invest 246.00 in InspireMD on September 12, 2024 and sell it today you would earn a total of 68.00 from holding InspireMD or generate 27.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Catheter Precision vs. InspireMD
Performance |
| Timeline |
| Catheter Precision |
| InspireMD |
Catheter Precision and InspireMD Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Catheter Precision and InspireMD
The main advantage of trading using opposite Catheter Precision and InspireMD positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Catheter Precision position performs unexpectedly, InspireMD 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 InspireMD will offset losses from the drop in InspireMD's long position.| Catheter Precision vs. National Beverage Corp | Catheter Precision vs. NETGEAR | Catheter Precision vs. Weibo Corp | Catheter Precision vs. Radcom |
| InspireMD vs. Bone Biologics Corp | InspireMD vs. Tivic Health Systems | InspireMD vs. Bluejay Diagnostics | InspireMD vs. Vivos Therapeutics |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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