Correlation Between Xtant Medical and InspireMD
Can any of the company-specific risk be diversified away by investing in both Xtant Medical 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 Xtant Medical and InspireMD into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xtant Medical Holdings and InspireMD, you can compare the effects of market volatilities on Xtant Medical 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 Xtant Medical with a short position of InspireMD. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xtant Medical and InspireMD.
Diversification Opportunities for Xtant Medical and InspireMD
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Xtant and InspireMD is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Xtant Medical Holdings and InspireMD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on InspireMD and Xtant Medical 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 Xtant Medical Holdings 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 Xtant Medical i.e., Xtant Medical and InspireMD go up and down completely randomly.
Pair Corralation between Xtant Medical and InspireMD
Given the investment horizon of 90 days Xtant Medical Holdings is expected to generate 1.3 times more return on investment than InspireMD. However, Xtant Medical is 1.3 times more volatile than InspireMD. It trades about 0.24 of its potential returns per unit of risk. InspireMD is currently generating about -0.04 per unit of risk. If you would invest 47.00 in Xtant Medical Holdings on November 9, 2024 and sell it today you would earn a total of 13.00 from holding Xtant Medical Holdings or generate 27.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xtant Medical Holdings vs. InspireMD
Performance |
| Timeline |
| Xtant Medical Holdings |
| InspireMD |
Xtant Medical and InspireMD Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xtant Medical and InspireMD
The main advantage of trading using opposite Xtant Medical and InspireMD positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xtant Medical 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.| Xtant Medical vs. Neuropace | Xtant Medical vs. Electromed | Xtant Medical vs. Orthopediatrics Corp | Xtant Medical vs. SurModics |
| 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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