Correlation Between Akso Health and Inogen

Can any of the company-specific risk be diversified away by investing in both Akso Health 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 Akso Health and Inogen into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Akso Health Group and Inogen Inc, you can compare the effects of market volatilities on Akso Health 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 Akso Health with a short position of Inogen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Akso Health and Inogen.

Diversification Opportunities for Akso Health and Inogen

-0.52

Correlation Coefficient

Akso Health  Inogen

Excellent diversification

The 3 months correlation between Akso and Inogen is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Akso Health Group and Inogen Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inogen Inc and Akso Health 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 Akso Health Group 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 Akso Health i.e., Akso Health and Inogen go up and down completely randomly.

Pair Corralation between Akso Health and Inogen

Considering the 90-day investment horizon Akso Health Group is expected to generate 3.91 times more return on investment than Inogen. However, Akso Health is 3.91 times more volatile than Inogen Inc. It trades about 0.08 of its potential returns per unit of risk. Inogen Inc is currently generating about 0.02 per unit of risk. If you would invest  112.00  in Akso Health Group on October 4, 2024 and sell it today you would earn a total of  24.00  from holding Akso Health Group or generate 21.43% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Akso Health Group  vs.  Inogen Inc

Akso Health Group

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Akso Health Group are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite nearly unsteady technical indicators, Akso Health reported solid returns over the last few months and may actually be approaching a breakup point.

Inogen Inc

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Inogen Inc are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy technical and fundamental indicators, Inogen is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Akso Health and Inogen

The main advantage of trading using opposite Akso Health and Inogen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Akso Health 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.

The idea behind Akso Health Group and Inogen Inc pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.