Correlation Between Beyond Air and Inogen
Can any of the company-specific risk be diversified away by investing in both Beyond Air 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 Beyond Air and Inogen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Beyond Air and Inogen Inc, you can compare the effects of market volatilities on Beyond Air 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 Beyond Air with a short position of Inogen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beyond Air and Inogen.
Diversification Opportunities for Beyond Air and Inogen
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Beyond and Inogen is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Beyond Air and Inogen Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inogen Inc and Beyond Air 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 Beyond Air 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 Beyond Air i.e., Beyond Air and Inogen go up and down completely randomly.
Pair Corralation between Beyond Air and Inogen
Given the investment horizon of 90 days Beyond Air is expected to generate 1.5 times more return on investment than Inogen. However, Beyond Air is 1.5 times more volatile than Inogen Inc. It trades about 0.19 of its potential returns per unit of risk. Inogen Inc is currently generating about 0.03 per unit of risk. If you would invest 43.00 in Beyond Air on August 27, 2024 and sell it today you would earn a total of 11.00 from holding Beyond Air or generate 25.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beyond Air vs. Inogen Inc
Performance |
| Timeline |
| Beyond Air |
| Inogen Inc |
Beyond Air and Inogen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beyond Air and Inogen
The main advantage of trading using opposite Beyond Air and Inogen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beyond Air 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.| Beyond Air vs. Lucid Diagnostics | Beyond Air vs. Inari Medical | Beyond Air vs. Clearpoint Neuro | Beyond Air vs. Avita 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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